A manufacturing company with 68 employees had received a letter from The Pensions Regulator informing them that they had 12 months until their staging date. The letter told them that they must have a qualifying pension scheme in place by this date and automatically enrol all of those members of staff who are eligible, making employer contributions on their behalf each time they run payroll.
The manufacturing company had an existing pension scheme in place however no members of staff had joined the scheme. The company had also been told that the scheme was not a qualifying scheme for automatic enrolment purposes and therefore they must find a suitable alternative.
The letter from the regulator told them that the staging date falls one month after their financial year end and so the directors were worried about the impact this could have on existing company processes and its staff at such a busy time of the year.
What we did
Following advice from Astute Wealth Management, the company decided on a suitable pension scheme and a strategy to help manage the implementation, communication and ongoing employer duties of automatic enrolment. Astute provided all the necessary guidance on the varied options available within automatic enrolment, including what definitions of pay to base contributions on and the likely initial and ongoing costs to the employer.
What we achieved
The manufacturing company successfully integrated the pension scheme into their workforce with ample time so as not to cause any stress or disruption to normal processes. They have met all of the duties required of them from the Pensions Regulator and so far 64 out of the 68 employees are contributing into their own individual pensions saving and investing for their own futures.