The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
SMEs are in danger of incurring additional costs and penalties if they do not act soon. However, recent research shows that nearly two-thirds (64%) of small business owners say that unexpected costs have caused serious business issues including: experiencing profit losses (23%); being forced to readjust growth targets (21%); and having to let staff go to free up funds (7%); demonstrating the need for businesses to ensure they receive professional advice. Mike Galvin, co-founder of Geniac, comments, “The fact that over half of small businesses are unprepared for auto enrolment should ring alarm bells. Entrepreneurs must avoid sleepwalking up to the deadline as this could cost them dearly, particularly fledgling companies with limited budgets. “Thousands of business owners are simply in the dark over how to handle this major administrative change, or are putting off sorting it because of the time involved. To avoid unexpected penalties, business owners should seek professional advice to get ready by the deadline.”
To find out more you can download the full research report .
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Call for evidence – NEST: evolving for the future 11 July 2016
A consultation has been published to consider whether the National Employment Savings Trust’s (NEST) remit needs to better reflect recent changes to the pensions landscape.
As part of Automatic enrolment in workplace pensions The Department for Work and Pensions (DWP) has launched a call for evidence on NEST, the government-backed provider of workplace pensions, and their future.
The consultation will consider whether the NEST remit needs to better reflect recent changes to the pensions landscape, including the introduction of the pension freedoms and the new State Pension, to meet the needs of its 3 million members. This may include providing new ways for members to access their pension savings and expanding the scheme to enable individuals, employers and other schemes to access NEST’s services.
With the introduction of automatic enrolment, there has been a move towards mass-market defined contribution pensions, and the government has made changes to how people can access their pension savings.
Attitudes towards retirement are changing – rather than a sudden event, people are beginning to view retirement as a period of transition. This means that new options are needed to adapt and appeal to meet consumers’ needs.
In undertaking this call for evidence, the government recognises the unique status of NEST in the pensions market, and that its core business will remain serving those workers and employers that are in its target market. To inform the debate, DWP has developed a series of principles to consider in weighing up proposals for change to NEST’s policy framework: Inclusiveness – focus on the benefits to NEST’s target market – low to moderate earners , regardless of their total pension wealth Consumer focused – ensure employers and consumers have choice and control, and that NEST is able to meet the needs and aspirations of its members Value for money – NEST remains a viable, low-cost, well run scheme that is stable over the long term Sustainability – enable NEST to keep pace with the rest of industry, offering members comprehensive retirement saving solutions that helps to lock in confidence to the broader pension system.
The call for evidence NEST: evolving for the future will run for 12 weeks (closes at 5pm on 28 September 2016).
CIPP comment The Policy Team will be reading and disseminating this consultation and will involve members and the industry accordingly for your input.
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The Chartered Institute of Payroll Professionals
Policy News Journal
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