The law on workplace pensions has changed. All Employers are now legally required to provide and make payments into a pension for certain workers.
“Does this apply to me?” If you employ a Personal Assistant it almost certainly does. Read onto find out.
Auto Enrolment and Workplace Pensions
A new law means that every Employer, with at least one paid Worker/Personal Assistant, will be required to automatically enroll some or all of their Personal Assistants (PAs), depending on age and salary level, into a pension scheme that meets certain minimum standards. Some PAs will also have the right to ask their employer to enroll them into the pension scheme. This is called automatic enrolment.
Depending on the worker’s age and salary level, Employers may be required to make contributions to this pension scheme, adding to the contributions made by their PAs.
Auto Enrolment is being phased in between now and 2018 with Employers being allocated a “staging date” which sets out when the Employer must have a pension scheme in place. Employers will receive a letter from the Pensions Regulator to let them know their staging date 12 months in advance. (Note for CILNI Payroll Users – if you get a letter advising of your staging date please forward immediately to CILNI or direct to Pauley Business Services)
You can also find your ‘staging date’ by clicking on the following link: http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx
The Pensions Regulator, a public body set up by the UK government to regulate all UK workplace pension schemes, has provided brief information entitled “The essential guide to automatic enrolment” for people who employ workers for their own care and support. To read or download the guide, click here.
Alternatively you can get it by going to the Pension Regulator’s own website at:http://www.thepensionsregulator.gov.uk/docs/The_essential_guide_for_people_who_employ_their_own_care_and_support.pdf
The purpose of this article is only to provide you with some initial information regarding automatic enrolment and Workplace Pensions. More detailed information will follow shortly on this website and in the form of new information leaflets/sheets.
CILNI Payroll Service
The CILNI Payroll Service will be able to provide service users with all the support and guidance that they need and take you through the process step-by-step. The service has a small number of service users with a staging date in the next six months and we will be taking the opportunity during this period to conduct a pilot study during which the payroll service team will be able to learn exactly what needs to be done with regard to enrolment, how it will work within the payroll, the work needed to set up pension schemes, the records to be kept and the completion of online returns.
Once we know exactly what is involved, will be able to fine tune our systems. Unfortunately, the extra work needed will inevitably give rise to additional costs for the payroll service, both for the initial enrolment of PAs and the setup of the pension schemes. As the CILNI Payroll Service is run on a full cost recovery basis, and we would not be allowed to cross-subsidise it from our core statutory funding, this will probably result in an increased charge for the service.
We will update you further once we have been able to assess the full cost implications of the new Workplace Pensions on the CILNI Payroll Service.
Important note: If you do your own payroll, or if you just want more information at this stage, the Pension Regulator has created a section on their website dealing with the most common questions on automatic enrolment and Workplace Pensions. To see these questions, please click here.Http://www.thepensionsregulator.gov.uk/automatic-enrolment-enquiries