Login Subscribe
Latest News
NEWS | 2012 | Preparing for auto-enrolment
Preparing for autoenrolment

20 April 2012

Preparing for auto-enrolment

For many, the introduction of auto-enrolment from 2012 has been on the agenda for a long time. We are now finally at the stage when the largest companies will start the process. Delays affecting all companies with less than 250 employees have been announced, but employers' thoughts are now turning to the governance and compliance aspect of the legislation.

Most employers will now know when they have to act, and what the cost impact will be. What many have not thought about is the next step in the process. Effectively, employers will need to ensure they get the right amount, to the right employee at the right time.

Assessing the workforce is the first step, and the employer needs to know who falls into the various categories; there will be eligible jobholders and non-eligible jobholders; entitled workers; agency workers; contractors; offshore payrolls, and various other things to consider.

Many employers are aware of what these people are entitled to but are uncertain about the next steps. The payments have to be made by certain dates, opt-outs will have to be processed in time, along with the fact that there will continually be new employees starting who will have to be enrolled on an ongoing basis.

The existing processes will have to change and this will not only affect the payroll function, but also HR through inductions, and finance departments through additional reporting.

If clients are not going to be certifying their existing schemes, they need to ensure there is nothing that will undermine this, as some entry criteria may need changing. Employers need to ask themselves if they are going to use it for all staff, or if they are going to form a feeder scheme, perhaps in NEST, the government scheme that will hold these employees.

There are answers to all these issues, and many of these will lie in the software that will be made available to employers, which will go some way to help tick the boxes. Providers will have their own versions, but there are many independent systems available, and making the right choice will be vitally important from a governance and compliance perspective.

Mattioli Woods can assist with all aspects of auto-enrolment, through our subsidiary Kudos, which works with clients to ensure they understand the full impact, and are fully compliant with forthcoming new regulations. For further information, please contact Alan.Fergusson@kudos-ifs.co.uk