Openworks presentation

Auto Enrolment in 2015

What we will cover

• Quick recap on auto enrolment

• The size of the market

• The regulator gets tough

• Too much trouble?

• The solution(s)

• How do I get involved

Quick introduction

Partner with

Guidance

52separate guidance notes

32 new employer responsibilities

1. Employer duties and defining the workforce

2. Getting ready

3. Assessing the workforce• Postponement• Transitional period for DB and

hybrid• Having completed the assessment

4. Pension schemes

5. Automatic enrolment process

6. Opting in, joining and contractual enrolment

7. Opting out

8. Safeguarding individuals

9. Keeping records

10. Information to workers

11. 11. Automatic re-enrolment

Over 70 items to address before, at and after your staging date

On the Openwork adviser hub

Pension schemes: Q1 – Existing scheme in place?

Qualifying

• Charges• Default fund• Barriers to entry

Accept AE population

• Will provider change terms to become qualifying• Different workforce profile

Q2 – what about NEST?

• Does not fulfill employers obligations

• Charges

• Restrictions

• Investment

• Flexibility

Myth: My pension provider will fully support me

60% not checked pension provision and how this would be affected

40% of employers using NEST were rejected by their current provider

80% + of employers needing to stage don’t have a pension scheme

What size employer?

If you don't know your PAYE reference, it can be found on a P6/P9 coding notice or on your white payslip booklet P30BC.

If you don't pay your staff through a PAYE scheme, your staging date will be 1 April 2017.

Step 1: Enter your PAYE reference:

• Tip: An example of a PAYE reference is 913 / WZ5121A. In this example you'd enter '913' and 'WZ5121A'.Take care not to confuse numbers with letters; zero and the letter 'O' look very similar!

Step 2: Enter the words/digits displayed below and then select 'Show my staging date'

2015 the year of auto enrolment

2012 –2014/15

43,538

2015/16

152,900

2016/17

617,000

2017/18

533,00

The next 12 months

April - June July -

September

October - December

January – March 16

20,000

8,000

15,000

110,000

Buying zone

The opportunity in perspective

1960-2014

2015 alone

A business opportunity?

The latest NEST insight survey of SME’s 74% of those questioned stated they “would be looking for advice”.

100,000+ employers looking for your help!

2015 onwards

An essential part of your toolkit!

The Pensions Regulator is creating the opportunity…

2437 investigations

58% contained breaches

Flexing its muscles

20% Increase quarter on quarter of fines and penalty notices.

Flexing its muscles

£400 statutory notice……..

Now issued escalating fines from £50 - £10,000 PER DAY!

Over 70 items to address before, at and after your staging date

On the Openwork adviser hub

The burden

TIME CAPABILITY RISK

Solution.‘become your clients lifeline’

Solution.‘become your clients lifeline’

Managed auto-enrolment service

What’s included:

• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Update payroll & provider• Register• Audit and record keeping

Supported auto-enrolment service

What’s included:

• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Partial record keeping• Audit

What does it cost for your client?

Ongoing administration

MAESFrom £195 per month

SAESFrom £ 0.25 per member per month

Initial

set up

£1,075

Worth getting involved?

Protection / Acquisition

Johnson Fleming Managed AE service

Typical client

£800 in year 1

£463 p.a. thereafter for lifetime of contract

* Assumes set up fee plus consultancy on scheme selection, monthly payroll and

single staging date.

Optional fees

• Source a qualifying scheme £625

• Assess existing scheme for suitability £625

• Advice on salary sacrifice

£625

• Advice on certification option £690

• Advice on staging date harmonisation £625

With a target audience over 1,200,000

£30,000 to solve a problem for 10 business owners (who are looking for

help) and make them a client for life with someone else doing the hard work.

No compliance, no administration or ongoing service requirements

How much do you want to get involved?

A new income source:

Advisory services

Pre enrolment £500

• Employer obligations• Staging date• Multiple staging dates • Assess existing pension

scheme(s)• Establish a new qualifying

arrangement • Assess workforce and

provide cost analysis • Auto enrolment checklist

• Group presentations• Pension surgery• Transfers• Governance• Wealth management• Funding options

• AE structure for your business

• PAYE & Payroll groups• The use of

postponement• Communication

options• The right pension

scheme• Use of salary sacrifice• Your certification basis• Payroll data, • mapping and uploading

Assisting in setting up £500 On going service - £750 p.a.

Your adviser hub

• Gives you all the material in PDF format that you need as an adviser

• Contact information for the JF helpline if you have any questions

• Updated frequently

www.johnsonfleming.com/openwork

Client facing site

• Gives your client all the info they need

• Allows them to sign up to each service

• Updated frequently

www.johnsonfleming.com/openwork-client

The user experience

• This pdf is on the right hand side of the client facing site

We are here to help

• Seminars & workshops

• Conference calls with clients

• Marketing support for AE

01527 571303

Quick recap – the facts

• 153,000 employers stage in 2015/16

• More pension schemes will be set up in this year alone than in the past 65

combined

• 1,100,000 between 2016 7 2017

• Most will leave it till last 3 months

• 74% stated they will seek advice

• 80% of accountants are looking for an auto enrolment solution

• 84% of employers approaching staging don’t have a pension scheme

Quick recap - Best time to engage?

• No need to wait till staging!

• Secure the resource

• Spread the cost

Quick recap – the opportunity

• Clients who are business owners or influencers?• Do you have so many clients you don’t need any more?• Do you have consultants looking for leads?• Perfect opportunity to solve a problem for a business owner

who HAS to obtain a solution• Many accountants still need a solution – great for referrals• Set up now then farm the client bank for years to come

20% introducer fee paid on all fees invoiced

Quick recap – getting started

ADVISER SITE

www.johnsonfleming.com/openwork

• All the info you need as an adviser

• All the info your client needs

• Lets them activate each service

• See all fees and additional services

CLIENT SITE

www.johnsonfleming.com/openwork-client

• All the info your client needs

• Lets them activate each service

• See all fees and additional services available

Questions ?

Thank you for listening

Important information

THIS DOCUMENT IS CONFIDENTIAL and intended solely for the use of the individual to whom it is addressed or any other recipient expressly authorised by Johnson Fleming Limited, in writing or otherwise, to receive the same. If you are not the addressee or authorised recipient of this document, any disclosure, reproduction, copying, distribution, or other dissemination or use of this communication is strictly prohibited.

Past performance is not a guide to the future. Potential for profit is accompanied by the possibility of loss. The value of investment funds and the income from them may go down as well as up and investors may not get back the original amount invested.

The content of this presentation is for information purposes, it does not represent personal financial advice and is not recommendation that contributions to the Group Personal Pension Plan will meet all of your future financial requirements for retirement.

If you have any doubts as to whether the content of this presentation meets your personal needs you should seek independent financial advice. Johnson Fleming has joined alliances with specialist business associates who are able to provide personal advice, at your request. These carefully selected business partners reserve the right to charge a fee for these services which would be agreed in advance before they undertake any work on your behalf.

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