The Government has been concerned for a long time that many people are not saving enough for their retirement, and so it is looking to employers to make changes to ensure this does not continue. It is estimated that around seven million people are not saving enough (or at all) for their retirement.
Whether we like it or not, auto-enrolment is on the way for both employers and employees; for large employers it is already here.
For a while now we have been looking, with the help of our Financial Advisors Blacktower, at the best options for WSM and our team. There is a National Employment Savings Trust (“NEST”) that has been set up by the Government, but is this the best option? Probably not. We do have a scheme in place but is it one that is appropriate or can be adapted? We also have to decide if the team are entitled workers or eligible or non eligible jobholders. Entitled jobholders must be automatically enrolled while non eligible jobholders and entitled workers have a right to join the pension scheme.
The Pension Regulator has set out the staging dates for implementation; all that is needed is the Company PAYE reference number and a check can be made on the Pension Regulator’s website, so at least we know what date we are aiming for. However we still believe early adoption is the best policy if possible.
We need to run a course of information sessions so that all our team understand what auto-enrolment is all about and how it affects them. In addition to this, the payroll department will need to know what's happening to ensure a smooth implementation.
Once all this is done, the levels of contributions and how these are going to be worked out will need to established, do we stick with the government requirements or adopt our own levels?
So much to do.