pensions
“
Make no mistake about this, auto-
enrolment WILL be a major headache for business, and the biggest pain for employers could well prove to be the issue of compliance
Seer Green Director Siobhan Mail
enrolment, which gives it the chance to budget for the extra financial burden that providing a pension for every eligible member of staff will create. “Make no mistake about this, auto-
“
enrolment WILL be a major headache for business, and the biggest pain for employers could well prove to be the issue of compliance. As the law stands, there will be a requirement on every employer to pay into a pension for every eligible employee – but no requirement on that member of staff to stay in the scheme. If the employee opts out, the employer has to continue putting in money for three months – and then claim his money back. “But it gets worse. Exactly three years
from the original opt-in date, that same employer has to re-register the member of staff who decided not to take part in the scheme and go through the whole process again. “Then there’s the issue of keeping
records for each and every one of your employees – which ones are opted in (and how much has been paid into their pension pot), which ones are out, and even which members of staff have since left the company and what happened to their pension benefits. And those records have to be kept for at least six years – and be available to be presented to the Pension Regulator on demand. “Let’s face it, planning ahead for
something like this will not yet be on the radar for many businesses, but auto- enrolment is one issue where they cannot afford to be reactive only at the last minute – otherwise they will pay heavily for the lack of preparation.” Mr Davies, who is celebrating 30 years
in the financial services industry, said the new regulations, originally a Labour government idea but now encompassed by the Coalition parties, are aimed at going
some way to solving the problem of the estimated seven million employed people in the UK who have no pension. Kymin has published a booklet called
‘NEST and Auto-enrolement’ which is a comprehensive guide on how and when the changes will affect businesses and what employers need to do to comply with the regulations. He said: “The whole system is
immensely bureaucratic and expensive in time and staff. It’s a nightmare but one which has to be faced.”
“
The whole system is
immensely bureaucratic and expensive in time and staff.
It’s a nightmare but one which has to be faced
The Kymin Group managing director Gerald Davies
“
THEbusiness QUARTER 45
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