The new research reveals some interesting results, key findings include the headline stat that 31% of employees feel their employer is responsible for their workplace pension, and also:
39% of employees say they can’t afford to save more into a pension due to day-to-day living costs 43% of young employees would be prepared to give up their employer pension contribution if they could access their pension more flexibly to buy a first home 44% of young employees feel retirement is too far off to worry about today People underestimate their life expectancy by an incredible 15 years 51% of employees say they would switch to part-time work if they had a retirement fund shortfall 76% of older employees want to phase in retirement gradually
The full report is available from Capita Employee Benefits .
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Automatic enrolment– what your clients need to know 1 December 2017
An article aimed at business advisers from The Pensions Regulator explains what clients need to know about their ongoing duties under automatic enrolment.
Every employer has automatic enrolment duties. They need to assess their staff, enroll them into a workplace pension scheme if they meet certain criteria, write to them to tell them what they’ve done, maintain a payment of pension contributions into their pension scheme and complete and submit a declaration of compliance with The Pensions Regulator. To date, nearly 9 million people have been automatically enrolled in a workplace pension by more than 850,000 employers. And with hundreds of thousands more employers due to reach their duties start date by February 2018, the number of people automatically enrolled will continue to rise. However, an employer’s workplace pension duties do not stop with declaring compliance. And with TPR conducting spot checks on employers across the country to make sure they are complying with their duties, it’s important you are aware what your employer clients need to do on a regular and ongoing basis to ensure they comply with the law. Recent research published by The Pensions Regulator shows the majority of employers did not have any difficulty with ongoing duties. The analysis shows that automatic enrolment is ‘business as usual’ for employers, and that it’s easier than they thought it would be. Most micro employers said they spend around half an hour each month meeting their duties and two thirds did not use outside help. Those who did said it cost them around £42 per month to use an accountant or auditor to help them. What are your clients’ ongoing duties? Your clients will need to ensure that they pay and maintain regular contributions into their chosen pension, monitor the age and earnings of their staff and enrol eligible staff, process any requests to join or leave the scheme, and keep and maintain accurate records. They’ll also need to re-enrol eligible staff into an automatic enrolment pension scheme every three years. Let’s take these in turn: 5. Pay and maintain regular contributions into the pension Employers need to calculate and pay the employer contributions to their staff’s pension scheme on an ongoing basis. In addition, they’ll need to calculate staff contributions, make the necessary deductions from payroll and transfer their contributions to the pension scheme. They’ll have agreed what these rates are and when to pay them with their chosen pension scheme. By law, your client and their staff have to make minimum contributions into the scheme, and they should be aware that these minimum contribution levels are due to increase in April 2018 and April 2019 (see below).
Date effective
Employer minimum contribution
Staff contribution
Total minimum contribution
Current until 5 April 2018 6 April 2018 – 5 April 2019
1% 2% 3%
1% 3% 5%
2% 5% 8%
6 April 2019 onwards
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 411 of 516
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