@TheBusJourney #SMEJourney The Business Journey No. 9 12 May 2015
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Jul 22, 2015
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@TheBusJourney #SMEJourney
The Business JourneyNo. 9
12 May 2015
@TheBusJourney #SMEJourney
The Business Journey
12 May 2015
@TheBusJourney #SMEJourney
The Business Journey aims to act as a free, non-executive board to owner-managed
businesses operating in the West of Scotland SME
community.
@TheBusJourney #SMEJourney
Event Programme
@TheBusJourney #SMEJourney
The Business Journey Partners
@TheBusJourney #SMEJourney
Event Programme
The Auto Enrolment JourneyColin Giffen
Henderson Stone & Co. Ltd
5 shillings per
week 49 53
1/6d per week 66 71
£148.40 per week 78 82
Life expectancy
at 65 86 89
State PensionLife Expectancy
M F
* Information used is taken from the Pension Regulator
Why Are We Here?
• £7,716.80 State Pension Per Annum
oYou need 35 qualifying years on your NI record to get the full State
Pension
• The average amount of income people hope to achieve is 47% of their pre
retirement income
o£24,440 – Average income in UK 2015
• UK income GAP in retirement of 33%
The Income In Retirement Gap
“Every employer needs to play their part to make
these pension reforms work, and our goal is to
make that task as straightforward as possible.
For those that do not engage, however, we want
to make it clear that there are consequences…”
Chief Executive of The Pensions Regulator, Bill Galvin
Workplace Pensions
• All eligible employees to be automatically enrolled into a qualifying pension
oEvery employer in the UK
oStaging between 2012 and 2018
• Failing to meet this obligation results in severe penalties
oDaily fines
• There are different types of workers
oEligible job-holders
oNon-eligible job-holders
oEntitled workers
• There are also different options available for you as the employer
oGo it alone
oWork with an Adviser/Payroll Provider
Executive Summary
• Automatically enrol eligible jobholders into a pension scheme
o You need to complete this within one month of your staging date
o Constantly assess your workforce to identify any new eligible jobholders
• Register with The Pension Regulator
o Maintain records for six years
o Register with TPR within five months of staging date
o Re-register with the TPR every 3 years
• Contribute to your workers pension
o Continue to automatically enrol workers into the pension scheme
o Run an opt in/joining process for other workers
o Monitor workers age and earnings regularly
Staging Date
* Information used is taken from the Pension Regulator
PENALTIES FOR NON-COMPLIANCEThe daily penalties prescribed increase with the number of employees
Number of Employees Prescribed Daily Rate
£
£501 - 4
£5,000250 - 499
£5005 - 49
£10,000500+
£2,50050 - 249
* Information used is taken from the Pension Regulator
AT STAGING AND BEYONDThe percentage contributed by both the employee and the employer will increase between now and 2018
* Information used is taken from the Pension Regulator
Contribution Structure
• Qualifying Earnings
o Earnings between £5,824 and £42,385
• Certification
o Based on scheme definition of pensionable salary and contributions
o Requires certification in advance and every 18 months
7% 8% 9%
3% 3% 4%
All EarningsAt least 85%
of total payBasic Pay
Minimum RequirementsTier 1 Tier 2 Tier 3
* Information used is taken from the Pension Regulator
• Work out your costs o Contribution level options to be paid into pension scheme
o Framework of pension scheme
• Check your records and payroll process o Up to date data
o Software integration with Auto Enrolment to run Assessments/Communications
• Choose the right pension scheme for you and your staff o Investment strategy
o Go it alone or seek advice
• Ongoing automatic enrolment duties/responsibilities o Pay contributions
o Keep records
o Review staff
o Comply with The Pension Regulator
What Do You Need To do?
Mid 2013 1000
PAYE schemes required to
register (‘000)
Employers Staging Per Month
Early 2014 3000
Feb 2016 30,000
Dec 2017 134,000
* Information used is taken from the Pension Regulator
Who Uses Henderson Stone?
• Business owners
o Struggling to deal with another layer of bureaucracy
• Accountants
o Wanting to insure the most appropriate investment strategy is used
• Payroll Companies
o Assist in the set up of the framework of the pension scheme
ITS ABOUT THE RIGHT PENSION FOR YOU AND YOUR
EMPLOYEES
LIFE JOURNEYStart with the end in mind
State Pension
Workplace Pension
Pension Age£
£
Thank you for listening
Colin GiffenT: 0141 352 7800
www.hendersonstone.co.uk
@TheBusJourney #SMEJourney
Questions for Colin?
@TheBusJourney #SMEJourney
Next eventTuesday 25 August 2015
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