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AUTO-ENROLMENT. A presentation by Bill Walker Partner Greyfriars Asset Management LLP. Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority . People are living longer. People are living longer.

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auto enrolment

AUTO-ENROLMENT

A presentation by

Bill Walker

Partner

Greyfriars Asset Management LLP

Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority

people are living longer
People are living longer
  • People are living longer

Source: Office for National Statistics, Pension Trends Chapter 2, 16 February 2012.

it s unaffordable
It’s unaffordable

Source: Office for National Statistics, Pension Trends Chapter 5, 27 October 2011.

happy 100 th birthday 1
Happy 100th birthday1

In 1917 = 24 Telegrams

In 1952 = 255 Telegrams

In 2007 = 8,439 Telegrams

By 2046 = 214,700 Telegrams

1 Source: The official website of The British Monarchy, January 2012

auto enrolment1
AUTO-ENROLMENT
  • All businesses
  • Auto-enrol all eligible employees (including directors)
  • Qualifying Workplace Pension Scheme
  • By your staging date
staging date
STAGING DATE
  • Based on the number of employees as at 1st April 2012
  • The Pensions Regulator – inform employers 12 months prior
  • thepensionsregulator.gov.uk – PAYE Ref.
staging date1
STAGING DATE
  • 250 plus employees Oct 2012 – Feb 2014
  • 249-50 1/4/14 - 1/4/15
  • Less than 50 1/6/15 - 1/4/17
  • New employers between 1/4/12 - 30/9/17
  • Staging date between 1/5/17 - 1/2/18
eligible employees
ELIGIBLE EMPLOYEES
  • Eligible jobholder
  • Entitled worker
  • Non-eligible jobholder
pensionable earnings
PENSIONABLE EARNINGS
  • Qualifying earnings – includes bonus, overtime, sick pay, maternity/paternity, adoption pay
  • (between £5,668 - £41,450 p.a.)
  • (increased annually)
  • 7% of all earnings
  • 9% of basic pay
phasing in
PHASING IN

Qualifying earningsTotalEmployer minimum

Oct 12 – Sept 17 2% 1%

Oct 17 – Sept 18 5% 2%

Oct 18 onwards 8% 3%

phasing in1
PHASING IN

7% of all earningsTotalEmployer minimum

Oct 12 – Sept 17 2% 1%

Oct 17 – Sept 18 5% 2%

Oct 18 onwards 7% 3%

phasing in2
PHASING IN

9% of basic payTotalEmployer minimum

Oct 12 – Sept 17 3% 2%

Oct 17 – Sept 18 6% 3%

Oct 18 onwards 9% 4%

opting out
OPTING OUT
  • Employees can opt-out at any time
  • Within one month – refund of contribution
  • After one month – no refund
  • DIRECTORS – TAKE CARE!!
who with
WHO WITH?
  • Insurance companies
  • Scottish Life, Standard Life, Aviva
  • Scheme by scheme consideration
  • Number of employees,

average age\salary\contribution

  • Profitable
  • At 1% each – probably not
national employment savings trust nest
NATIONAL EMPLOYMENT SAVINGS TRUST (NEST)
  • Low to medium earners
  • More expensive than insured

1.8% deducted off each contribution plus

0.3% p.a. annual management charge

  • Limited fund choice
  • Cautiously invested even for younger people
  • Currently doesn’t allow transfers in or out
  • Provider of last resort
sanctions
SANCTIONS
  • Stage 1 – Compliance notice - time scale
  • Stage 2 – Fixed penalty £400

Four weeks minimum to sort it out

  • Stage 3 – Daily penalties

1-4 £50

5-49 £500

500+ £10,000

summary
SUMMARY
  • Start now
  • 2015 - 50,000 employers per month – staging date
  • Industry won’t cope
  • Take advice on:
  • Definition of pensionable pay
  • % contributions
  • Which provider

www.greyfriars.co.uk

auto enrolment2

AUTO-ENROLMENT

A presentation by

Bill Walker

Partner

Greyfriars Asset Management LLP

Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority