pension providers, advisers and other intermediaries with capacity planning, but it should only be used as a broad indicator.
This forecast is based on PAYE information as at 1 April 2012 and is an estimate, based on a number of assumptions, of the number of employers’ PAYE schemes expected to become subject to the automatic enrolment duties. The figures underline the scale of the challenge ahead, with around 30,000 medium-sized employers (50-250 workers) reaching their staging date between this April and the end of the year.
For full details view the four page forecast on TPR’s website .
NEST research shows 2014 stagers face fundamental challenges in getting automatic enrolment right
28 January 2014
2014 employers have three fundamental gaps that could present challenges when meeting the new workplace pension requirements: an experience gap, a knowledge gap and a reality gap New findings released today by NEST show that employers staging in 2014 have three fundamental gaps to deal with as they meet their automatic enrolment challenges. Identified as the experience gap, knowledge gap and reality gap, NEST warns that, compared with their predecessors, second year employers may not be engaging enough with the detail of the reforms in order to successfully manage their duties. The report, NEST Insight, commissioned by national not-for-profit pension scheme NEST, found that first year employers successfully navigated their way through the legislation thanks to their pensions experience and knowledge and by dedicating enough time to the project. However, many reported that implementing the duties took longer than expected. The research found that 20 per cent of first year employers had taken over 16 months to get ready, despite previously offering a pension scheme to at least some of their workers. Even with this level of preparedness and experience, 66 per cent found meeting their duties more difficult than anticipated. “The success of automatic enrolment so far, with low opt-out rates and over 2.5 million workers automatically enrolled in a workplace pension, is due in large part to the efforts of first year employers. 2014 sees a new set of employers meeting their duties and they may find it more difficult than their predecessors. Our research suggests that 9 out of ten employers will expect help to fill any gaps in experience, expectations and knowledge. ‘Our research also suggests that intermediaries are gearing up to help, but it’s vital that providers, intermediaries and employers work together to ensure the next wave of employers can meet their duties successfully.” Commenting on the findings, NEST chief executive Tim Jones said:
NEST insight identifies three gaps that employers may need help to tackle in 2014 and beyond:
The experience gap Around a third of 2014 employers are likely to either not offer any pension scheme at all or just have a shell stakeholder scheme in place, while all 2013 employers had offered a pension. Only around half (52 per cent) said that they had a good understanding of pensions compared with 96 per cent of earlier stagers.
The knowledge gap
CIPP Policy News Journal
16/04/2014, Page 404 of 519
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