Are you meeting your auto enrolment pension obligations?
The government has placed a range of pension scheme obligations on all employers, no matter how large or small.
In brief, these obligations are:
- To make a pension scheme available to all staff
- To automatically enrol certain categories of employee into the scheme
- To pay contributions for and on behalf of employees
As these duties now apply to all employers, no matter how large or small, it’s more important than ever that as an independent retail business, you’re confident that you are fully compliant and not at risk of fines.
TPR is now carrying out random visits to employers to audit their pension arrangements. In cases where arrangements have been found to be unsatisfactory, fines of up to £10,000 per day have been levied.*
April 2019 pension contribution increases
As you may be aware, the minimum level of contributions that must be paid to pension schemes will increase in April this year. Currently, the minimum allowable level is 5 % of qualifying earnings, of which the employer must pay at least 2 %. With effect from April, this will increase to 8 % of qualifying earnings of which the employer must pay at least 3 %.
If you are using Salvus’s assessment software to calculate your employees’ contributions, this increase will automatically be taken into account. If you carry out assessment through your payroll software, you should find that the systems reflect these new minima – but you may wish to check with the software developer to be 100 % sure.
Read more from TPR here.
bira’s approved service partner for pension matters is Wren Sterling – a long standing and well-respected Benefit Consultant with offices in eight cities across the UK. They can work with you as a bira member to ensure that your pension arrangements are compliant (and that you are not going to get caught by any nasty fines). If you would like to speak to an adviser contact Bryan Stott on 07717 506115.
Wren Sterling recommend Salvus Master Trust to run your pension scheme. Salvus already runs schemes for more than 300 bira members and offers an online administration system which is quick and easy to use.
“The Salvus software that is provided with the pension will, if used correctly, ensure that you as an employer are fully compliant. The system will issue all the statutory communications, keep all the required records, check pension contributions to ensure minimum contributions are paid, and if the pension regulator calls the system can produce regulatory reports.” Says Bryan Stott, Corporate Pension Consultant at Wren Sterling.
If you are having difficulties with your current pension scheme provider and would like to consider moving to Salvus, call Bill Finch, Head of Sales at Salvus on 07484 073900.Find out more about Bira Workplace Pensions