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Direct Payments Support Service Employer Bulletin

May 2015

The purpose of the monthly bulletin is to provide you with general information around your employer responsibilities but will change from time to time as and when legislation does so it is important that you read it each month. We are here to help, so if you have any queries please contact us.

Dear Employer,

Auto Enrolment is here!

We have been advising employers to expect a letter from The Pensions Regulator for some time and to forward the letter to us if you would like our support. We will be writing to each employer shortly detailing how we can support you. If you have received a letter from The Pensions Regulator, it is important that you take action as soon as you receive the letter and do not ignore it.
If you would like our support then please forward the letter on to us as soon as possible. If you are unsure about whether you have sent your letter to us then please give us a call and we will check for you.
We have also introduced an Auto Enrolment section on our website where we have posted this information. This is a brief overview of Auto Enrolment:

Auto Enrolment/Pensions - The 7 steps

Step 1: Know your staging date

We will be writing to you shortly and will confirm your staging date. You can also find out your staging date online at this link to the Pension Regulator, you will need your PAYE reference number.

Step 2: Assess your workforce by placing them in the following categories:-

Eligible jobholder

• Aged at least 22 but has not yet reached stage pension age
• Earns above £10,000

Non-eligible jobholder

• Is at least 16 and under 75, and
• Earns between £5824 - £10,000

Entitled worker

• Aged at least 16 and under 75
• Works in the UK
• Earns below £5824

Step 3: Review your pension arrangements

You must set up a pension scheme to enrol your staff onto.
NEST is one of the pension schemes that employers can use to meet their new duties. It’s been set up by the UK government and is specifically designed for automatic enrolment. It’s a trust-based scheme, run independently from government on a not-for-profit basis.
More information on NEST is available on the NEST website

Step 4: Communicate the changes to all your workers

You must inform all your workers in writing about the changes detailing how they are affected by the changes. It is important to communicate the right message to the right employee at the right time.

Step 5: Auto-enrol your eligible jobholders

There is a process that you will need to follow in order to make an eligible jobholder a member of an automatic enrolment pension scheme from the staging date. Certain information about your eligible jobholders will also need to be supplied to your pension scheme provider. You will also need to provide enrolment information to the eligible jobholders so they can decide whether to opt out.

Step 6: Register with The Pensions Regulator and keep records

You are required to tell the The Pensions Regulator how you have complied with your new employer duties within 4 months of your staging date. You will also need to keep records about your workers.

Step 7: Contribute to your workers’ pensions

Starting on your staging date you must contribute to your chosen pension scheme on behalf of your workers. The minimum contribution that an employer must pay into their workers’ pension scheme will be introduced gradually over a 6 year period – this is known as phasing.