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SPN APR 2012 Pool&SpaIndustry
WHAT ARE YOU DOING ABOUT
PENSION PLANNING? Independent Financial Services (UK) Ltd offer some practical advice for specialist companies as the BSPF seeks to provide help on understanding the new demands for mandatory pension schemes for employees
The British Swimming Pool Federation consulted Independent Financial Services (UK) Ltd to find out how companies and employees can make this scheme work for them and what are the benefits of signing up now.
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The IFS replied that the demographics of the UK mean that more people are retiring and living longer. The baby boomers after WW2 are now hitting retirement age. There are more people drawing pension from the State Scheme than are paying in – simply put the State Pension Scheme is going bankrupt. Something needs to happen. In 2001, the Government tried Stakeholder Pensions, but it did not make employers enrol employees nor make contributions, most did not enrol and it was a disaster. So they have introduced new pensions legislation. With teeth!
“It will be chaos in 2016, with thousands of firms trying to get help. Planning ahead is the key, and the benefits of having your own scheme will aid recruitment and retention of good staff... ”
oon every company will be required to provide a mandatory pension scheme for each employer.
1 The new law comes into effect in October 2012, but most small firms won’t be affected till January 2015 – but that’s still less than four years away
2 The IFS estimate that there are 800,000 small firms, who employ staff, that will have to comply
3 They will be given a ‘staging date’ based on their PAYE reference number. At this date they will have to a) have a qualifying scheme, b) enrol all staff into it (who are ‘eligible’) and c) make contributions
4 For firms of 30 employees or less (most of the industry ) these staging dates will be between 1/16 and 4/17
5 Failure to comply invokes heavy fines and eventual imprisonment
6 All employers MUST have a scheme – they have NO CHOICE
7 The only choice they have is whether to use the Government’s own NEST scheme or have their own
Many firms will wait – and that is an option, but planning ahead could solve many of the problems and forward-thinking employers could end up with a pension scheme for their employees that has not cost them very much, and is a huge employee benefit.
Over 60% of employees surveyed think that a pension is the most important benefit and employer could offer, and over 30% would not trust a Government scheme.
By doing something now, employers can take their time, get expert advice, choose a scheme that suits them and their employees, start with relatively low contribution levels and increase these over time, avoiding a major strain on their cash flow.
In addition, pension contributions made by an employer do not attract National Insurance Contributions, and are a tax-deductable expense. As Paul Baker Managing Director of Independent Financial Services (UK) Ltd, who
provide advice to BSPF members, states: “It will be chaos in 2016, with thousands of firms trying to get help. Planning ahead is the key, and the benefits of having your own scheme will aid recruitment and retention of good staff, and need not be expensive.”
IFS have an employer’s guide – call Stephen Burns, Consultant on 07789 078763 for a copy. For a free no obligation appointment please contact Stephen.
Independent Financial Services (UK) Ltd is an appointed representative of Lighthouse Advisory Services Ltd, which is authorised and regulated by the Financial Services Authority. spn
i FOR FURTHER INFORMATION
F INDEPENDENT FINANCIAL SERVICES (UK) LTD ( 01453 797500 :
www.independentfinancialservicesuk.co.uk
www.swimmingpoolnews.co.uk
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