What if you DO have an existing pension scheme?
With automatic enrolment rapidly approaching, businesses are searching for advice and guidance so they can fully understand their duties as employers.
The majority of employers are keen to establish how much it’s likely to cost them and when they are going to have to begin the process. The National Employment Savings Trust (NEST) will only be appropriate for certain types of organisations and companies with existing pension’s arrangements are keen to understand what changes, if any, will have to be made in order to meet their duties.
Some of the more common questions have been detailed below;
- Will our existing pension scheme meet the automatic enrolment rules? If it doesn't, what do we have to do and how much will it cost?
- We’re not sure if we want or need NEST, what are the options available?
- Is our current pension scheme a suitable and competitive option?
- After automatic enrolment, how will our existing pension scheme look and what's the new cost?
- Who continues to manage the automatic enrolment of our employees?
What to do next?
If you are considering these and other questions, then now is an ideal time to have your existing pension scheme reviewed. Auto enrolment may have a significant impact on your current pension plan, such as an increase in contributions and membership. It's prudent to have your arrangements reviewed for competitiveness and suitability.
It would be good advice to check with your existing pension provider to see how their scheme will operate after automatic enrolment. Some may not provide the same conditions for an automatically enrolled plan than they provide for an existing plan e.g. how would your provider respond if automatic enrolment introduces new employees into the existing scheme if they’re low paid and the turnover is high and these employees aren't normally offered this benefit?
Making suitable preparations is essential in understanding how you deal with the new requirements.
We have designed an employers guide to the new pension rules, please complete the form to download your free copy. Alternatively please contact us for further information or to speak to a workplace pension specialist.