either meet the £10,000 per year threshold but not the age requirements or who meet the age requirements but not the £10,000 earnings threshold. Entitled workers: These workers are entitled to join a pension scheme and are between 16 and 74, who ordinarily work in the UK but who earn below the earnings threshold of £5,772 per annum. It should be noted that although the thresholds are quoted in annual terms, the assessment will always use a pro-rata value based on whether the worker is paid weekly, monthly or fortnightly etc. This means that their total earnings in a year are not relevant and they only have to earn over the threshold in one pay period to trigger automatic enrolment. It should also be noted that the categorisation of worker covers workers wholly or ordinarily working in the UK. For certain employments, this may require further investigation to understand the exact scope of these terms in relation to the employment. Assessing the workforce – detailed guidance: www.tpr.gov.uk/docs/detailed-guidance-3.pdf Ongoing duties It is important to keep track of the workforce to ensure compliance with their automatic enrolment duties. Workers must be assessed regularly as their contracts, hours, pay and conditions may change. Regular data cleansing and ensuring all staff records are up to date will help ensure workers are assessed correctly and will avoid the risk of non compliance.
Further detailed guidance on assessing workers is available on the TPR website: www.tpr.gov.uk/employers/know-your-workforce
Automatic enrolment: Declaration of compliance due in November?
10 November 2014
The Pensions Regulator has issued a reminder that thousands of medium employers (62-89 workers) who staged this July need to complete a declaration of compliance (registration) with the Regulator by the end of November.
Employers must submit information to the Regulator about how they’ve complied with their employer duties by the statutory deadline. Those who do not could be fined.
If you have any clients who staged in July 2014, make sure that they do not risk incurring a fine: ensure they have met their duties and that their declaration of compliance is completed on time.
Click here to download a pdf of the declaration of compliance checklist.
CIPP survey on the Automatic Enrolment earnings threshold for 2015-16
11 November 2014
The Government has issued a consultation document to consider the earnings threshold for 2015-16 and the CIPP Policy team has issued a survey to collect your views.
Automatic enrolment obliges employers to enrol all workers who satisfy age and earnings criteria into a workplace pension arrangement and pay at least a minimum level of contributions. The automatic enrolment earnings trigger determines who saves. The qualifying earnings band sets minimum contribution levels for money purchase schemes. These thresholds must be reviewed each year, and revised if appropriate, taking into account the prevailing rates of National Insurance contributions, PAYE personal tax allowance, basic state pension, inflation and any other factors that the Secretary of State considers relevant.
CIPP Policy News Journal
08/04/2015, Page 346 of 521
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