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26 May 2017 Register  Login
By host on 20/12/2016 16:11
According to The Pension Regulator’s Automatic Enrolment Declaration of Compliance Report for December, more than 7,000,000 people in the UK are now saving for their retirement through auto enrolment. These employees have been enrolled via more than 340,000 auto enrolment-compliant businesses.

Regarding these record figures, the UK’s Pensions Minister, Richard Harrington announced:

"We have made great strides forward by automatically enrolling seven million people into a workplace pension – now the challenge is to make sure that everyone can benefit from a financially secure retirement, including those working for the smallest employers.

"Next year more than 700,000 small employers will see their workplace pensions duties start and my message to them is clear: don’t be daunted,...
By host on 23/11/2016 13:26
The Apprenticeship Levy, set to commence in April 2017, aims to help the UK create three million apprentices by 2020.

The new legislation will require businesses with a yearly annual pay bill of more than £3 million to spend 0.5% of that total on the apprentice levy.

Whilst the legislation is being introduced from 6th April 2017, payments aren’t due to start until May the following month. It is the responsibility of the businesses themselves to report to HMRC each month if their business is eligible to pay into the levy, which is paid directly through the PAYE process.

How do you know what you have to pay?

It’s an easy three step process:

·         Work out exactly what your total wage bill is, including bonuses, pensions and any extras

·         Work out what 0.5% of your total bill is

·         Detract the £15,000 levy allowance

Whatever is left if the figure which must be paid into the Apprenticeship Levy.

12Pay can help remove you automatic enrolment...
By host on 19/10/2016 10:10

How Auto Enrolment Is Putting A Financial Strain On Small Businesses

Small businesses are struggling with the costs of auto enrolment, research has found. 

By host on 07/09/2016 10:21

The Pensions Regulator have launched their new online guide for companies approaching their auto enrolment re-enrolment deadlines.

By host on 10/08/2016 12:35

Tensions heighten as the TPR joined Sir Philip Green for crisis talks to plug BHS' £571m pensions shortfall.

Three weeks ago in a fraught meeting with MP's the retail tycoon promised to 'sort' the huge deficit from the collapse of BHS earlier in the year. The collapse led to 11,000 people becoming unemployed and a further 20,000 former employees at risk of facing a pension reduction or losing their pension altogether.

Sir Philip had been advised by accountancy firm Deloitte on a restructuring plan, however this set alarm bells ringing at The Pensions Regulator who immediately set up a conversation to with Sir Philip and Deloitte. Under the new proposals BHS savers who had saved £18,000 or less would receive a lump sum payment with the remainder being looked after in a new fund, which would be boosted by cash from the Arcadia Group.

By host on 12/07/2016 13:16
Chancellor George Osborne announced earlier this year that the introduction of the lifetime ISA will not affect the success of automatic enrolment. 

Concerns were raised that the Lifetime ISA (LISA) being introduced would undermine incentives for employees to save for their retirement through workplace pension schemes. Whilst auto enrolment remains compulsory, employees can choose to opt-out, which they must do every three years.

George Osbourne announced in the 2016 budget that the LISA will be available from April 2017 to any adult under the age of 40. They will be allowed to save up to £4,000 a year and will receive a 25% bonus from the government for every pound they invest, until the age of 50. The LISA can either be used towards buying a first home or as retirement income without a withdrawl penalty. 

The Head of Pensions at Fidelity, Richard Parkin, said "Encouragingly, the research shows that those who are involved in company pensions do value them and will stick to the scheme even...
By host on 08/06/2016 09:01
Back toward the end of May, The Pensions Regulator (TPR) issued their latest compliance and enforcement update. 

Compliance and enforcement

Greater than 95% of the first lot of SMEs and micro-businesses who were required to enrol into a workplace pension scheme are now compliant. However, over 800 of the issued £400 fixed penalty notices were issued between the months of January and April and additionally over 100 escalated penalty fines were issued.

Escalated penalty notices are one of TPR's powers of enforcement that put pressure on employers to comply with the legislation. TPR are not in the business of fining companies for the sake of it and prefer to work with businesses who feel they may miss their staging date in order to correct this. If you feel you are in danger of missing your staging date, get in touch with TPR as soon as you can.

How is "Workie" working?

The government campaign to raise the awareness of the workplace pension reform and the need for businesses to automatically enrol their employees into a pension scheme has been going strong. TPR are reporting that from their recent research - 79% of employers recall seeing a TV, radio or online advertisement. In addition to this, since Workie was launched, TPR say that their homepage has received over 690,000 unqiue visitors to the site.

...
By host on 11/05/2016 09:43
Last month the National Living Wage was introduced meaning that employers must now pay employees over the age of 25 a minimum of £7.20 per hour.

This is fantastic news for those on minimum wage aged 25 and over (estimated to affect about 2.6 million workers in the UK) because it now means a pay rise that is significant in value.

However, the new rise for over 25 year olds has been estimated that this will mean nearly 3 million people could see themselves become eligible for a company pension scheme and by law, must be assessed and enrolled if required to do so by their employer.

It is also important that you don't mix up the National Living Wage with the National Minimum Wage. For the National Minimum Wage, the amount is currently set at £6.50, it will rise by 20p to £6.70 on October 1st for 21 to 24 year olds. For 18 to 20, the amount is set at £5.30, under 18 is set at £3.87, and apprentices should be paid a minimum of £3.30.

How has this impacted auto enrolment?

The current...
By host on 13/04/2016 10:27
The Pensions Regulator (TPR) released a key employer message in March. This update included three top tips that they recommend for all employers that are approaching auto enrolment.

1) Don't choose your pension scheme too late

One of the main themes of the messages given from TPR is to do with ensuring that you are as prepared as you can be when it comes to auto enrolment. In this first point, TPR recommends that employers begin preparing for auto enrolment at least 12 months in advance and they also state that businesses must be giving themselves plenty of time to choose the right pension provider for them and their employees. TPR recommend that “large well run master trusts, which have obtained Master Trusts Assurance (MTA), and group personal pension plans (GPPs) authorised by the FCA are a good choice for employers seeking to comply with their automatic enrolment duties.”

2) Allow The Pensions Regulator to receive information that is relevant to you and your business

...
By host on 07/03/2016 14:53
In October 2015, the Department for Work and Pensions (DWP) introduced "Workie"; the "Physical embodiment of the Workplace Pension" according to Pensions Minister Baroness Ros Altmann.

The initial idea behind auto enrolment is to get people saving for their retirement years due to the fact that there will be less people working proportion to those that are retired.

Workie was introduced to create an increased awareness around auto enrolment and workplace pensions to smaller and micro businesses. 

Over four months later, is Workie doing his job?

Initially met with confusion and a rather large amount of scepticism, Workie was branded as a waste on taxpayer's money initially when it was revealed that it had cost £8.5m to produce the campaign. 

Baroness Ros Altmann defended the campaign and explained that "Workie has been very successful". She added that "We need everyone to know they are entitled to a workplace pension - and we need all employers to understand their legal responsibility...
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