Step 7 Choose a pension scheme If you do not have a pension scheme already you will need to make sure you have one available for your staging date. You cannot postpone (defer) your staging date, however, you are allowed to postpone the enrolment of individuals for up to 3 months from their joining date. Your employees will, however, have the option to opt-in straight away and you must have a scheme available for them from your staging date. There are various pension providers available from mainstream insurance companies to NEST, which is the workplace pension set up by the government. If you already have a pension scheme it may be possible to use this for your automatic enrolment duties, but you will need to make sure that this meets the requirements laid down for a Qualifying Workplace Pension Scheme i.e. a scheme that meets the government’s requirements for automatic enrolment. Many existing schemes are not able to be used for automatic enrolment and it is very important to discuss this with your existing pension provider or advisers as early as possible in the process.
Although there are various types of pension scheme available which are designed for automatic enrolment, they can differ significantly in cost and functionality. It is important to choose a pension scheme that is both competitive for your employees, but also one that complements your own business processes. It can be very valuable for an employer to seek advice in this area. Some pension advisers will be able to offer both advice on the pension provider and also the expertise needed to implement your chosen scheme as smoothly as possible, and help your employees understand the benefits of what you are providing.
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