13 January 2014

Create your plan early for the new Government Auto Enrolment pension scheme

Every business in the UK, employing staff and operating a pay as you earn (PAYE) scheme must register for auto enrolment. The CIPD surveyed 400 private organisations and found that the auto enrolment process is likely to be more complicated for SME’s, with many of them fearing that they will struggle with the costs of scheme administration and employer contributions. Some companies anticipate the need to freeze pay or reduce pay growth, including reductions to bonuses or overtime.

You can avoid having to resort to these measures by starting to plan well ahead of your staging date. Taking a strategic approach to auto enrolment will hopefully mean less pressure, more effective communication with employees and smooth integration into existing HR strategies.

Auto-enrolment was launched in 2012 for the largest of organisations, with approximately 30,000 employers due to reach their staging date between April and June 2014. This will make demand for professional advice and guidance very high. There are many companies offering pensions, with varying fee structures, but you need to be fully informed of all your options in order to negotiate the best deal and to make the right choice about levels of contribution. Even if you already have a stakeholder pension scheme set up, you will need to check that it qualifies for auto enrolment as some will not be fit for purpose.

Therefore, we urge you to act now and plan ahead of your staging date – The Printing Industry Pension Scheme, will offer advice and guidance through Meridan Financial LLP.

Please contact your regional office on 020 7915 8400 for more information.