Ensuring your workplace pension scheme remains compliant

Posted on Apr 09, 2018

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All businesses that employ at least one person are legally required to operate a workplace pension scheme. However, simply putting one in place isn’t enough; The Pensions Regulator (TPR) requires that it is set up to meet its rules, monitored regularly and delivers good outcomes for members.

For most companies, the thought of introducing a workplace pension scheme seems like a huge responsibility, particularly as not complying with the associated rules and regulations comes with hefty fines - so it’s important to get it right and to keep following the rules.

At The Goodman Partnership, we help businesses to implement a suitable scheme, adapt their payroll process so that employees are correctly assessed and enrolled each month and communicate effectively with their employees about what will happen and what choices they have. We provide support to our corporate clients, so they can be sure they are complying with the complex workplace pension rules regarding the assessment of employees, the deduction and payment of contributions and timely issue of mandatory communications.

When an employer sets up their workplace pension scheme, they are required to let The Pensions Regulator know that it’s in place. To do this, an online declaration of compliance must be completed within five months of the staging date or duties start date. If we are looking after your workplace pension scheme, then we will complete the information on your behalf for you to check before submission. If the declaration isn’t completed and submitted, then a business could be fined.

Once the initial compliance duties have been met, an employer has an ongoing responsibility to make sure that their workplace pension scheme remains compliant, such as deducting and paying contributions each time staff are paid.

Other things an employer will need to do to remain compliant – and which we can support them with – include:

  • Making sure all eligible employees are automatically enrolled in the workplace pension scheme – this includes assessing new members of staff, or an existing employee when they reach their 22nd birthday, or when their monthly pay reaches the threshold (currently £833) that takes them into the bracket for automatic enrolment.
  • Dealing with other team members who are not eligible to be automatically enrolled but may want to opt in to the scheme.
  • Processing eligible employees who have decided to opt out of the scheme.
  • Carrying out re-enrolment duties every three years, whereby members of staff who have opted out of the pension scheme or ceased paying contributions are assessed and re-enrolled in the scheme if eligible. And completing an online re-declaration of compliance.
  • Meeting their ongoing record-keeping duties.

As part of our service, we will produce an annual governance report which includes a review of compliance – making sure your scheme has met the rules and suggesting improvements where necessary – as well as suitability, administration and employee engagement.

If you’d like to know more about how The Goodman Partnership can support the ongoing management of your workplace pension scheme or any other employee benefits, call Graham Rose on tel: 01892 500 600 or click here: www.goodmanemployeebenefits.co.uk/

 

 


Goodman Chartered Financial Planners is a trading name of Fairstone Financial Management Ltd. Fairstone Financial Management Ltd., is authorised and regulated by the Financial Conduct Authority – FRN: 475973 Registered in England and Wales no: 05574120. Part of the Fairstone Group. Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: www.financial-ombudsman.org.uk.