saving for retirement. But significant risks remain. The volume of smaller employers will impose significant pressures and DWP will need to ensure that more widespread enrolment translates into higher retirement incomes.” The report commends the DWP for successfully introducing automatic enrolment to workplace pensions for large and medium-sized employers, (who account for around 20 million workers) but says that here are, however, significant risks ahead, as 1.8 million smaller employers are required to enrol their workers by 2018. The report finds that 58,000 employers have enrolled 5.4 million workers between October 2012 and August 2015. Smaller employers are expected to have different requirements and responses to automatic enrolment. Greater operational challenges will also be created as the number of smaller employers increases. While most eligible workers work for larger employers and have already enrolled, the vast majority of employers still have to start automatic enrolment. According to the NAO, the longer-term success of automatic enrolment will depend on its ability to stimulate higher retirement incomes and the DWP will need to monitor the way the programme interacts with wider pension and welfare reforms. The report details that the DWP should assess the impact of wider pensions policies, including pensions flexibilities, on automatic enrolment and monitor emerging trends and concerns, paying particular attention to the responses of employers and scheme trustees.
Read the full report: Automatic enrolment to workplace pensions .
Common automatic enrolment challenges 12 November 2015
The Pensions Regulator is holding a free webinar on 23 November to discuss some of the issues small employers and business advisers can find challenging about the automatic enrolment process.
Do you know how postponement should be used correctly? Or how a director or a personal services worker should be treated for the purposes of automatic enrolment? Do you know the steps to take if your client fails to carry out their duties on time?
Register for the free webinar being held by the Pensions Regulator on 23 November from 15:00 to 15:45. The opportunity will also be available to ask any questions you may have about automatic enrolment.
The plain English guide to automatic enrolment 17 November 2015
The Pensions Regulator has informally provided a plain English guide for small and micro employers.
The type of employer The Pensions Regulator(TPR) is now engaging with has changed with around half having just one or two members of staff. These employers are typically ‘time poor’ and have less financial knowledge, so information needs to be presented simply and concisely. TPR has refreshed their website and simplified the language they use in the employer sections. Key terms and phrases have been replaced with simpler terms, so that buzzwords, jargon and acronyms are avoided and legal terminology is kept to a minimum and clearly explained when used. The plain English guide is for business advisers and other pensions industry professionals who are familiar with technical automatic enrolment terms. The guide shows how TPR is explaining the terms to small and micro employers - for example ‘opt in’ is being replaced by ‘ask to join’. The guide was provided through TPR’s Industry Liaison update which highlighted that some of the terms they are using have not changed and their definitions may not always be technical or legal definitions, but are instead intended to make the guide simple and easy to understand. If you already use these terms in your processes or with your clients, you may choose to phase in some of the new terminology, or simply use this guide for reference.
The Regulator has no immediate plans to publish the guide on their website.
The plain English guide to automatic enrolment
CIPP Policy News Journal
25/04/2016, Page 334 of 453
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