Automatic enrolment requires employers to enroll eligible employees into a workplace pension scheme and make minimum contributions. Employers must identify their staging date which determines when their duties take effect. They will need to assess their workforce, set up a pension scheme, make contributions, and keep records to comply. Non-compliance will result in penalty notices and fines from the Pensions Regulator. Employers must take action now to prepare for their staging dates or face potential legal consequences.

1. Retirement
Solutions Hoskin Financial Planning
Automatic
Enrolment

2. Summary
• Auto Enrolment is designed to get more people
saving for the future
• Employers must have some sort of pension
provision for all employees
• Employers need to identify their staging date – this
determines when their employer’s duties will apply
• Employers will have to set-up and contribute to a
pension scheme suitable for automatic enrolment

3. • Employers must assess their workforce to determine
which duties they need to carry out
• Employers will have different duties depending on
the types of worker they employ
• Employers will need to keep records of how they’ve
met and continue to meet their duties
• The Pensions Regulator (TPR) will ensure employers
comply with the new duties and impose penalties on
those who don’t

4. Or else...
Compliance/unpaid contribution
Warning notice
„Wake up call‟ Fixed penalty - £400
Escalating penalty
Workers Penalty per day
1-4 £50
Persistent offenders 5-49 £500
50-249 £2,500
250-499 £5,000
500+ £10,000

5. What happens if you get it wrong?
Prohibited recruitment conduct
Workers Fixed penalty
1-4 £1,000
5-49 £1,500
50-249 £2,500
250+ £5,000
Third parties
£400 fixed
£200 per day escalating

6. Doing nothing is not an option...
The Pensions Act 2008, Section 45(2)
“A person guilty of an offence under this
section is liable -
a) on conviction on indictment, to
imprisonment for a term not exceeding
two years, or to a fine, or both;
b) on summary conviction to a fine not
exceeding the statutory maximum.”

7. “…there is a risk if we allowed employers to
say “we left it too late and it was difficult”, it
would set a precedent. We cannot have that
kind of excuse,”...
TPR spokesman
New Model Adviser 21/09/2012
Source: New Model Adviser “TPR shows no mercy as firms struggle with auto enrolment” 21 September 2012.

8. Hot topics
(the importance of professional connections)
Who is a worker?
Contractual enrolment
Salary exchange
Payroll
Car allowances
NEST changes...etc...

9. Employers required to register by staging date
50 or more people in PAYE scheme
(lower estimate)
2,000-2,999
160-89
Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012

10. Employers required to register by staging date
49 or less people in PAYE scheme
(lower estimate)
140,000
<30
Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012

11. Employer help?
"Our research shows that…employers with
as few as one hundred staff - are expecting
help from NEST and other providers…the
fact is we won't be able to and neither will
any other provider.“
Roy Porter, NEST assistant director,
distribution
Source: www.professionalpensions.com, “NEST warns small employers will not be ‘hand held’”, 30 October 2012

12. Getting advice
Source: DWP Research Report No 546 ,‘Employers’ attitudes and likely reactions to the workplace pension reforms 2007”

13. Auto-enrolment is happening!!
You need to act now
Speak to your Financial Adviser

14. Any
Questions?