Auto-enrolment Strategy
Alpha Limited didn't have anyone internally who knew how to deal with the new Workplace Pensions legislation. The Financial Director was particularly concerned about how to comply with automatically enrolling employees into Alpha Limited's existing pension scheme.
Alpha Limited already had a pension scheme in place with a well known pension provider, but weren't sure about which aspects of the Workplace Pensions legislation it ticked and what needed to be done to ensure it was compliant. Alpha Limited offered an employer contribution, which was calculated on basic salary and employees were offered membership after they had completed their first year of service.
Alpha Limited were unsure whether or not their existing pension scheme was fit for purpose and how their contribution structure should be benchmarked against the new Workplace Pensions legislation. Alpha Limited also had a large number of unpensioned employees who would need to be automatically enrolled into a scheme at their staging date (time to act).
Workplace Pensions Made Easy identified the following issues for Alpha Limited
Workplace Pensions Made Easy explained how the current contribution structure (particularly the definition of salary used for pension contributions) and waiting period would need to be altered to ensure Alpha Limited did not fall foul of The Pension Regulators requirements.
Following negotiations with Alpha Limited's existing pension provider, Workplace Pensions Made Easy were also able to ensure free software was made available to assess Alpha Limited's workforce each month and provide accurate information for payroll to deduct and pay over contributions.
Importantly, it was established that those employees who were not currently in the pension scheme, and who would need to be automatically enrolled, could not join the existing scheme due to changes in the current pension providers stance on new joiners. Workplace Pensions Made Easy were able to offer an alternative provider solution for these employees.
Workplace Pensions Made Easy explained how the contribution structure for the unpensioned employees could be phased in over time, helping to reduce the cost for both employees and employer to the minimum levels required for compliance. Perhaps most importantly of all, Workplace Pensions Made Easy created a project plan with agreed actions, to ensure that Alpha Limited met all The Pension Regulators requirements in a timely and cost effective manner.
Alpha Limited realised that due to the complexity of the new Workplace Pensions legislation, they would need to retain the services of Workplace Pensions Made Easy to provide ongoing Scheme Governance and assistance for employees,