Hertfordshire Employers Workshop Automatic Enrolment.

Hertfordshire Employers Workshop

Automatic Enrolment

Background

• What is Automatic Enrolment?

• Why has it been introduced?

• What is different to the current system for LGPS and Teachers Pension Agency (TPA)?

• Can I leave it to the pensions people?

When does it apply from

Automatic Enrolment is effective from your staging date:

• Why has the Government given employers different staging dates?

• Do you know your staging date?• If not do you know how to find out your staging date?

Decisions each employer must make

• Are you going to use transitional delay?

• Are you going to use postponement?

• Who is going to issue letters and communications to staff?

• Who will change the recruitment process?

• Who is going to register with The Pensions Regulator when you have passed your staging date?

What we can do to support you?

Important to realise that Automatic Enrolment is anemployers issue.

• Suggested wording for letters;

• Posters and communication document’s; and

• Experts (staff who have lived through the process previously).

Typical Problem Employees

• Casual employees;• Consultants;• Councillors; and• Maternity leave.

An example below employer staging date 1/4/13 recruits a new employee 1/5/13 on her 21st birthday

• 1/5/13 - Brought into scheme under scheme rules (opts out)• 1/5/14 - Auto enrolled at age 22 (opts out)• 1/5/15 - Goes on nil pay on trip of lifetime/maternity leave• 1/10/15 - returns to full pay so is auto enrolled (opts out)• 1/4/16 - Third year anniversary of staging date so is auto

enrolled (opts out)

Complaints?????

Problem Employers

Employers with multiple schemes:

• Teachers and Local Government; • Lots of casual employees;

• Multiple payroll providers;

• Local Government plus defined contribution schemes; and • Employer where the Local Government scheme is a closed fund.

Suggested Timetable

I have a little spread sheet to help employer keep track of communication requirements.

• Staging date;

• General steps to consider;

• Split between if you use transitional delay or not; and • Responsibility.

Good News

Reasons to be cheerful

• The LGPS is a qualifying scheme;

• Other employers have gone through the process;

• Current practise complies with the majority of the requirements; and • Electronic opt out route being prepared;

Bad News

Reasons to remain vigilant

• I stress it is the employers decision on who to AE and ultimately the Pension Regulator has the powers to fine employers who do not comply with their requirements;

• There will be upset staff/complaints; and

• The administration will be a pain.

Summary

• Employers issue;

• Employer cannot issue any opt out forms;

• Need to repeat every 3 years;

• LPFA can offer assistance; and

• There will be complaints.

Thank you

Contact details:

Neil LewinsTechnical Officer0207 369 6066neil.lewins@lpfa.org.uk