Analysis – Page 13
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Analysis
Beware penalties for pensions auto-enrolment non-compliance
If you read nothing else, read this… Employers must refer to pensions in an employee’s contract of employment, but those that provide too much detail could run into difficulties if they want to make changes in the future. Employers cannot provide staff with opt-out forms if they want to leave ...
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Analysis
The latest changes to auto-enrolment legislation
If you read nothing else, read this… Auto-enrolment legislation has undergone several changes since it was announced in the Pensions Act 2008. The qualifying earnings threshold for staff to be eligible for auto-enrolment has risen from £5,000 to £8,105. More flexibility around contribution levels has also been granted for employers ...
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Analysis
Auto-enrolment roundtable: Communication
If you read nothing else, read this …When trying to push the auto-enrolment message home to a younger audience, the trick is to avoid jargon.Employers must structure their communications according to the characteristics and needs of their workforce.The pension reforms are being publicised nationally, but employers must ensure their own ...
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Analysis
Auto-enrolment roundtable: Costs
If you read nothing else, read this …The direct costs of implementing auto-enrolment will depend on factors such as how many employees opt out.Payroll system upgrades and widespread communication exercises could increase the administration costs of auto-enrolment.Some employers may seek economies elsewhere in their benefits budget to cover the costs ...
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Analysis
Auto-enrolment roundable: Administration
If you read nothing else, read this …Employers may spend a lot of time on the administration created by a small number of staff, such as contract workers.Even employers that already auto-enrol staff may need different processes to comply with the legislation.When auto-enrolling staff, employers could inadvertently breach protections around ...
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Analysis
Auto-enrolment roundtable: Ensuring compliance
If your read nothing else, read this …Some employers are taking steps, such as trying to boost numbers in existing schemes ahead of staging dates, to ensure they are not overrun once auto-enrolment starts.Compensation and benefits professionals will need to get buy-in from all parts of their organisation – HR, ...
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Analysis
Auto-enrolment roundtable: Will reforms succeed?
If you read nothing else, read this …The pension provision offered for auto-enrolment should also serve an employer’s workforce planning strategy and wider business interests.Employers that want to continue using their pension to boost recruitment and retention may have to raise the stakes and make sure their offering stands out ...
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Analysis
How does pensions auto-enrolment fit with flexible benefits?
If you read nothing else, read this…Under auto-enrolment, the main purpose for offering flex must not be to induce staff to opt out of a scheme.The communication and design of a flex scheme and the contribution structure of a pension scheme will be key to determining what is acceptable.An employee ...
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Analysis
How to get the most out of providers and advisers in the run up to auto-enrolment
If you read nothing else, read this…Employers need an auto-enrolment roadmap outlining their objectives before reviewing providers’ services.Employers should compare their pensions, HR and payroll providers’ services with the market to ensure they are most suitable for their organisation.Test providers on how they will: identify staff to be auto-enrolled, communicate ...
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Analysis
The Defined Contribution Debate
Over the past few years, the writing has been on the wall for final salary or defined benefit (DB) pensions. There was little doubt defined contribution (DC or money purchase) schemes would become the new world order, but growing concerns were voiced that DC had been run as a sideshow ...
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Analysis
Quality control needed for DC schemes
If you read nothing else, read this …DC schemes have been the poor relation in pensions with little time spent on them.They have been criticised for low levels of governance and poor investment structures.Investments have typically been 90% equities with little consideration for individual risk tolerance.More than 80% of DC ...
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Analysis
Get a full view of pension annual management charges
If you read nothing else, read this…Annual management charges (AMCs) can range from approximately 0.3% to 1%.Employers setting up a new pension scheme may be able to take advantage of competitive terms being offered by providers in a ‘land grab’ ahead of the Retail Distribution Review coming into effect from ...
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Analysis
Making sense of auto-enrolment staging dates
If you read nothing else, read this... Staging dates are when employers must begin the auto-enrolment process for eligible staff into a qualifying workplace pension scheme. Employers' staging dates are determined by the number of staff members employed at April 2012 and their pay-as-you-earn (PAYE) reference. Staging dates for employers ...
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Analysis
Auto-enrolment showcase: Countdown to the pension revolution
PHASING DATES FOR COMPULSORY CONTRIBUTION LEVELSThe minimum contribution rates that an employer must pay into an employee’s pension scheme will be introduced according to its staging date. From the employer’s staging date to 30 September 2017: Employer and employee each contribute 1% of salary. Total minimum contribution is 2%. From ...
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Analysis
Employee Benefits auto-enrolment showcase
Download a PDF of the Employee Benefits auto-enrolment showcaseCountdown to the pension revolutionPositive thinking will achieve objectivesFinding out the how and how muchImplementation and cost mitigationEvolution not revolution for pensionsAdministration will be the big challengeMaking all the pieces of the puzzle fitWho ordered all these extras anyway?Nest offers a straightforward ...
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Analysis
Pensions auto-enrolment hard to crack for small employers
If you read nothing else, read this... The staging dates for employers with between 50 and 249 employees to comply with the pension reforms will be staggered between 1 April 2014 and 1 April 2015. Employers may use existing schemes for all eligible staff or set up new arrangements for ...
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Analysis
How many staff will opt out after pensions auto-enrolment?
If you read nothing else, read this ...Every employer must be ready for auto-enrolment, so start planning early. What is the corporate strategy? They should work out how much they want to achieve and can afford.Know the workforce – segment them and consider how they may react. The closer to ...
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Analysis
Starting a defined contribution pension from scratch
If you read nothing else, read this… A defined contribution pension scheme is no longer a hands-off option, with The Pensions Regulator turning its spotlight on these plans. Good governance is a relatively cost-effective way of differentiating an employer’s pension scheme. Employers should give careful thought to default funds, and ...
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Analysis
Pension reforms: Counting the costs of implementation
If you read nothing else, read this … Complying with the 2008 Pensions Act could increase employers’ pension costs significantly, particularly if a large part of their workforce is not currently enrolled in a workplace pension. Employers must consider two basic costs: how much contributions will cost, and the price ...
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Analysis
Crucial choices ahead of pension reforms
If you read nothing else, read this … Employers will have to decide whether they offer new pension scheme joiners the existing level of contributions or the minimum required by the 2012 pension reforms. The reforms have increased the interest in cash balance schemes. Nest is likely to be most ...