C


e


m


l


e


a


b


i


r


l


a


t


i


n


v y


r e C


e a


s r


a e


s Proposed Pension Reform 2012


THE proposed pensions reform legislation, due to be introduced in 2012, will have wide- ranging effects across every fi eld of business. You can prepare now by gaining a thorough understanding of the changes and their potential impact upon you and your business. This article summarises the main changes, what they mean to you and how best to prepare.


b


The MFW experience – you said


“We moved our business to MFW because we were fed up with dealing with robots. We were impressed with Mike Whittaker and what MFW had to offer, not least a smiling face to deal with.” Russ Timpson, The Fire Strategy Company.


Summary of the proposed reforms The key reforms affecting employers relate to the Government’s plans for making it easier for more people to save for retirement. As a result, it is putting the onus on employers to help encourage people to save:  Employers will be required to automatically enroll employees into a ‘qualifying pension scheme’. This could be your own company scheme if it meets certain criteria or a NEST, a simple, low-cost pension scheme being introduced by the Government.


 Employers will be required to contribute a minimum of 3% of each employee’s eligible earnings. Employee contributions and tax relief will be added to meet a minimum 8% contribution rate.


 While employees can opt out, for those choosing to contribute, you will have to contribute at least 3% of the ‘qualifying’ earnings.


Automatic Enrolment Sometime between 2012 and 2016 (depending on the size of


who do not have access to a good company scheme. It is designed to be a simple, low cost way for these individuals to save, and will have a number of features that ensure it remains suitable for these individuals.


your business), you will have to automatically enrol all eligible employees in a qualifying pension scheme and make contributions to their plan. Employees eligible for automatic enrolment will be:  Those who are not already active members of a qualifying scheme; and


 Are aged between 22 years and the State Pension age; and


 Have earnings in excess of the income tax personal allowance (£7,475 in 2011/12).


National Employment Savings Trust (NEST) The NEST Scheme is intended for lower earners


“Please note that this is our


understanding of the proposed legislation and therefore we cannot accept responsibility for any action taken as a result of reading this publication”


Argentis Financial Management Ltd is authorised and regulated by the Financial Services Authority.


Argentis Financial Management


Ltd, registered in England and Wales, company registration number 05137790


 A low annual management charge of 0.3% and a contribution charge of 1.8% to meet the cost of establishing the scheme.


 A limited choice of investment funds.


 An annual contribution limit of £4,271 a year.


 Transfers in and out of the NEST scheme are not allowed, except at retirement.


For many Employers, this could be a good thing – a simpler way of meeting the new requirements than running, or setting up a qualifying company scheme however it should be noted that the NEST scheme is unlikely to have much appeal to moderate and higher earners, or to employees looking for advice, a greater degree of choice and higher contribution levels. Therefore we are looking to actively help companies assess the impact of Pension Reform on their business. In light of the changes from 2012 taking action now and reviewing your current situation could avoid further additional costs to you and your business.


BE ALERT AND PROTECT YOURSELF


SUCCESSFUL businesses and brands are an attractive target for fraudsters. Information about your organisation may be available to the general public (eg Companies House, Internet sites, directory enquiries etc). It is therefore essential to ensure you know who you


are dealing with at all times. Be alert


Fraudsters are targeting post, in particular invoices and cheques. Regular invoices between suppliers, contractors and other third parties are just as vulnerable as cheques. Look out for the following tell-tale signs:  the fraudster may initially telephone a company and ask for a contact name to whom they can send the invoice;


 a written request will be sent (this will appear in order and seemingly from a known supplier, contractor etc) advising you that they have changed their bank account details used to receive regular payments;


 the request is usually on headed paper which appears authentic;


6 Business Matters


 the details of the company secretary, fi nance director or other offi cials, including their signature, will appear correct. This information has likely been copied from the company’s annual report or website; and


 email addresses used by fraudsters are very similar to genuine suppliers, contractors and other third parties.


How you can protect your business Undertake an independent check with the company who is asking for their bank details to be changed, using a known contact telephone number and not the one on the letter. Initiate the same process as above for any new payments.


Do not publish your bank account details on the internet (the site may get cloned and genuine customers may end up sending monies to the fraudster’s account). Ensure that information is not disclosed to third parties who are not entitled to receive it or who cannot be suitably verifi ed.


For more information refer to the Action Fraud website: www.actionfraud.org.uk


i


c


c


e


M


d


W


i


l


s


1936 2011


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8