On 6 April 2018 automatic enrolment requirements are changing. You need to take action, communicate any changes to employees and ensure your scheme is still fit for purpose. Failure to do so
could result in fines and negative publicity. Are you ready?
Auto enrolment is not just about paying the right contributions; you need to ensure you have appropriately communicated with employees and the pension scheme you use remains fit for purpose.
Since the introduction of automatic enrolment, there have been many changes in pension legislation, not least greater freedom in how people can use their retirement savings. It’s worth considering how well your pension scheme has kept pace with these changes and whether it still meets your needs. After all, it is important to ensure your employees value the benefit you provide!
The Pension Regulator has been writing to employers to remind them of their auto enrolment obligations. It has also made a series of press releases, naming and shaming employers who have not met their duties. In one case, an employer was fined £60,000.
In this edition of DC Spotlight, we take a look at the requirements and set out a number of actions we suggest you take.
If you don’t read anything else:
• Minimum payments will increase from 6 April 2018 and again in 2019
• The change is an Employer responsibility
• Salary sacrifice, flexible benefits or contractual enrolment could complicate matters
• Check your pension scheme is still fit for purpose
• Ensure your employees understand and value their pension