This initiative is a timely response to the latest research from the Pensions Regulator and NEST showing that small and micro employers will need practical help in ensuring that they are ready to implement auto enrolment, and that they will be looking to their agents and payroll providers for this help. CIPP comment This is surely a crucial time for payroll provider members, particularly smaller ones and bookkeepers, to consider whether you should be more proactive in supporting your clients preparing for auto enrolment. More importantly, are you ready to be proactive - because if you aren't someone else will be?
Many auto enrolling employers contributing more than legal obligations
18 November 2014
New research by the Chartered Institute of Personnel and Development (CIPD) shows that many employers are contributing substantially more in respect of their auto enrolled employees than the legislation requires. The report on the latest CIPD survey of 1,080 employers shows that the average employer contribution is 5.6 per cent of salary, with employees typically contributing 4.7 per cent, compared to the legal minimum of 1% for both employers and workers. One potential worry for the future is that nearly half of employers yet to enrol in the scheme anticipate restricting future pay growth to pay for auto-enrolment, while 19 per cent envisage job cuts and hiring reductions.
CIPP response to the consultation on reviewing and revising the automatic enrolment earnings threshold for 2015-16
27 November 2014
The CIPP has submitted its response to DWP’s consultation on reviewing and revising the automatic enrolment earnings threshold for 2015-16.
The key points from the document are:
69% of respondents believe that aligning the automatic enrolment threshold with an existing payroll threshold reduces complexity. Three quarters of respondents favour increasing the automatic enrolment threshold in line with the tax threshold. Respondents use both tax relief arrangements, Net Pay Arrangement (NPS) and Relief At Source (RAS) equally.
The Policy Team would like to thank all those who found the time to complete the survey, we are very grateful.
You can see the full response here .
Low awareness of auto enrolment cap on charges
27 November 2014
Almost a third of businesses have not heard of the forthcoming workplace pensions charge cap, according to the latest research from Close Brothers Asset Management.
CIPP Policy News Journal
08/04/2015, Page 348 of 521
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