What is Auto Enrolment?
Auto-enrolment is a new pension reform law introduced by the government [Pension Act 2008]. Under the new pension legislation, all employers must offer a workplace pension scheme and automatically enroll eligible workers. This law has been introduced to encourage and help more people to start saving for their retirement due to increased strain on the State benefits system. It is vital that people start to contribute to a pension scheme at an early stage in their working lives to provide them with extra savings that will top up the State pension.
Auto-enrolment has been operational since October 2012, beginning with larger employers and slowly progressing to smaller employers. By 2018, all employers will have to automatically enroll eligible workers unless they opt out.
Auto Enrolment Pensions
In addition to providing a payroll service, we are able to take the stress and burden out of auto-enrolment with the help of our new sage pension module. Sage pension module enables us to carry out all the necessary auto-enrolment tasks and comply with legislation. Duties would include:
- Assessing all employees to identify their eligibility for auto-enrolment
- Processing opt-ins and opt-outs
- Handling postponement periods
- Generating letters of communication to send to employees
- Exporting and importing pension data
Along with the Sage pension module, we will work closely with each client’s chosen IFA. We have our own IFA which we are happy to recommend to clients if they so wish to use.