Automatic enrolment for employers Managing your workforce Recruitment International - Managing your contingent workforce Jeremy Leslie-Smith Industry liaison manager 28 March 2017 The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. DM 3738762 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. E
Topics • Why is automatic enrolment being introduced? • What employers need to do • Who is subject to the automatic enrolment duties? • Staging dates and overall timetable • Worker categories and the duties and rights for pension scheme enrolment • Pension schemes and pensionable earnings • The automatic enrolment processes • Postponement • Monitoring worker status and re-enrolment • Opt ins and opt outs • Communicating with workers • Keeping records • Re-enrolment • Declaration of compliance DM 3738762 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. E
Why is automatic enrolment being introduced? There are currently four people of 7 million working age for every pensioner people are by 2050 there will be just two. under-saving Past and predicted trends in the life expectancy period of 65 year old men and women in the UK as of 2004 and 2010 DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Quarterly forecast of employers due to comply with AE We estimate that up to 750,000 employers are due to start their AE duties in 2017 DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Overview of legal duties and safeguards Automatic enrolment legislation gives employers a duty to: ✓ automatically enrol all staff who are eligible (‘eligible jobholders’) ✓ other staff who have the right to ask to opt in or join a pension ✓ communicate to their staff ✓ manage opt outs and promptly refund contributions ✓ every three years, automatically re-enrol staff who are eligible ✓ complete a declaration of compliance with the regulator ✓ keep records ✓ maintain payments of pension contributions The employee safeguards mean that employers: must not induce staff to opt out or cease membership of a pension, and must not indicate, when recruiting new staff, that the decision to employ them will be influenced by whether or not they intend to opt out. DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Duties checker DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Duties checker: Before you begin www.tpr.gov.uk/en/employers/duties-checker DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Tell us if you run a business DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Is your business still active? DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Do you employ anyone? DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Who is included in the automatic enrolment duty? Staff may be subject to the automatic enrolment legislation if they are: • aged 16 to 74 (inclusive), and work or ordinarily work in the UK * ... • ... whether or not they are full time or part time, permanent or temporary. So, this could include: • staff working overseas who are considered ‘ordinarily working’ in the UK * . However, the truly self employed are not subject to automatic enrolment. * the Channel Isles and the Isle of Man are outside the UK DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Who is excluded? Certain people are exempted from the AE duties, including: • directors not working under an employment contract; • a director who is working under an employment contract, where they are the only employee in the company - but only for the work they carry out for that company; • office-holders who are not considered workers (eg non-executive directors, trustees, elected members) - but they are only excluded for the activities they carry out as an office holder; • the ( truly ) self-employed . * See additional slides on “Exceptions” for more details DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
See your staging date 1 DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Staging • The duties apply to each employer from their staging date: – and the duties apply to all of the employer’s workers from that date. • An employer’s staging date will be based on the PAYE scheme or schemes that were being used on 1 April 2012. Do not assume you know your staging – After 1 April 2012, any change to the PAYE schemes date - check this on being used will have no effect on the staging date. our website • An employer who had workers on 1 April 2012, but was not using a PAYE, will have a staging date of 1 April 2017. • New employers* will go last, from May 2017 onwards. * Organisations that did not exist Large Medium Small/micro New * employers or had no workers employers employers employers as at 1 April 2012. Oct 2012 April 2014 June 2015 May 2017 Feb 2018 DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Staging dates for new employers (post 1 April 2012) PAYE income is first payable in respect of any worker Staging date From 1 April 2012 up to and including 31 March 2013 1 May 2017 From 1 April 2013 up to and including 31 March 2014 1 July 2017 From 1 April 2014 up to and including 31 March 2015 1 August 2017 From 1 April 2015 up to and including 31 December 2015 1 October 2017 From 1 January 2016 up to and including 30 September 2016 1 November 2017 From 1 October 2016 up to and including 30 June 2017 1 January 2018 From 1 July 2017 up to and including 30 September 2017 1 February 2018 DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Bringing forward staging dates • For an employer with no one to automatically enrol: – there is no need to have a pension scheme in place – they can bring forward their staging date to any date (not just the 1 st of the month). • Employers who do have workers to automatically enrol must: – get consent from their pension provider to use the chosen pension scheme from the earlier staging date; – AND can only choose a date which is a current standard staging date (so must be on the 1 st of the month, but cannot be on 1 June 2017, 1 September 2017 or 1 December 2017). • An employer must inform us that they want to change their staging date, and must do so on, or before, their new staging date. Once an employer’s staging date has been brought forward, it cannot • be changed back – we have no power to do this. DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Bringing forward staging dates on our online portal Make sure you click on the “Next: Declaration” button and go on to the next screen to declare that you definitely want to bring the staging date forward (this is NOT a declaration of compliance) DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
To tell us you are not an employer • If you do not believe you are an employer because: – this is a sole director company, with no other staff, or – this is a company with more than one director, where no more than one director has an employment contract and there are no other staff, or – this company has ceased trading, or – this company has gone into liquidation or has been dissolved, or – you no longer employ people in your home (eg cleaners, nannies, personal care assistants). • Tell us at: https://automation.thepensionsregulator.gov.uk/notanemployer • The tool is not for employers who: – have no staff to enrol on their staging date, or – for companies in administration or in non-terminal insolvency. DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Your staging date DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
Do you employ anyone between 22 and SPA? DM 2750193 v7X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.
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