The Pensions Regulator has published over 250 pages of notes to help employers comply with their responsibilities, which in essence break down into 33 pension responsibilities for each employer!
To make life a little easier, we have broken them down further into 5 main areas – here is an overview of your main duties:
- Categorise your workers. You may think everyone should be included in auto-enrolment, but it’s not that simple.
- Communications. There are a number of different communications you need to send to different categories of worker at different points in time.
- Keep detailed records of opt-ins and opt-outs.
o Employees can opt out
o Employees who aren’t eligible now may become eligible
o Opted-out employees may change their mind.
Detailed records relating to all this movement must be maintained and updated at all times.
- Manage your payroll. Your payroll system will need to ensure the correct contributions are payable for each employee every time the payroll is run (see FAQ’s to see how much you will need to contribute).
Choose a pension plan. You’re also expected to select a pension plan and take decisions about which investment choices to offer your employees – decisions that are usually only taken by pension professionals with many years’ experience.