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Auto-Enrolment – Avoiding Daily Fines

August 31st, 2012 by

piggy_bankPension Reform deadlines are imminent. Towergate Financial have been working with a large number of our existing clients throughout the UK, both those with and without existing pension arrangements. In their experience to date all of these employers have needed to address one or more of the items listed below:

  • Do you offer every eligible employee access to a workplace pension scheme
  • Do you automatically enrol these employees as per the new regulatory requirement
  • Does your scheme meet one of the 4 minimum funding requirement?
  • Do you offer access to a default investment that includes a life-styling option

If the answer to any of the above is “No” you will not be able to register your scheme as qualifying with the pension regulator and you should seek advice.

Regardless of the details of your existing pension arrangements are you satisfied that you have the resource to manage the following onerous administrational burden presented by automatic enrolment?

  • Managing employee opt-outs
  • Managing your monthly payroll certification (or weekly where applicable)
  • Managing your payroll requirements including:

Enrolment

Opt Outs

Re-Enrolment

Certifying qualifying contribution levels

  • Record Keeping

The requirements highlighted above represent only a few of the many processes you will need to meet in order to meet full compliance status with The Pension Regulator.

Failure to meet all of your legal obligations may result in a daily fine of £2,500* or a one off fine amounting to a maximum of £50,000.

We will contact you in due course to offer a mutually convenient free consultation, without obligation, in order to discuss your position and answer any questions you may have.

* based on a company with 50-249 employees (can be up to £10,000 per day for larger companies).  Financial Advice is provided by Towergate Financial, part of the Towergate group of companies.  All information is based on Towergate Financials understanding of current legislation and may be subject to change.

For a PDF version of this information, please click here.