We’ve been talking to our clients over the last year or so about their responsibilities as employers to get to grips with Auto Enrolment. There are quite a few misunderstandings, so check to see if you have fallen for any of the following AE myths:
- I don’t need to get involved as I already pay into my staff’s pensions.
You will need to check with your current pension providers to ensure that the current pension schemes are qualifying schemes for AE. If you are paying into your staff’s private pension schemes, it is unlikely that these will qualify for AE. Even if you have a company pension scheme you will need to check with the pension company whether or not they will accept new staff into the scheme.If not, you will need to set up a separate AE scheme.
- I’ve talked to my staff and none of them want to pay into a pension.
It is illegal to encourage your staff to opt out, to choose job applicants who state they are willing to opt out or to treat an employee unfairly because they won’t opt out. Employers will be fined by the Pensions Regulator for doing any of the above Opt out forms will be supplied to your staff by the Pension Provider and cannot be issued by the employer.
- I only employ my wife, so don’t need to set up an AE pension
All employers, even if they only employ one family member, will be legally required to comply with the AE rules.
Remember that it is your duty as an employer to have an AE pension scheme set up by your staging date. The TPR has already started to fine employers who have missed the deadlines for setting these up and registering their scheme with the TPR.
If we run your payroll we can provide additional advice, support and ongoing maintenance of your auto enrolment duties, however, ultimately the responsibility for complying with AE lies with the employer.