Understanding The Pension Regulator
The Pension Regulator (TPR) is a government agency responsible for overseeing workplace pension schemes. Their primary goal is to protect the interests of pension scheme members and ensure that pension schemes are run efficiently and effectively.
Key Responsibilities of Employers
Employers have several key responsibilities when it comes to workplace pensions:
Auto-Enrolment: Ensure that eligible employees are automatically enrolled into a workplace pension scheme.
Eligibility Assessment: Accurately identify employees who meet the eligibility criteria for auto-enrolment based on age, earnings, and contract length.
Automatic Enrolment: Enrol eligible employees into a pension scheme within the specified timeframe.
Contribution Levels: Ensure that both the employer and employee are contributing the minimum required amount to the pension scheme.
Employer Contributions: Contribute at least the minimum percent of employee's eligible earnings to the pension scheme.
Employee Contributions: Inform employees of their right to contribute more of their earnings if applicable.
Information Provision: Provide employees with clear and concise information about the pension scheme as per The Pension Regulator’s regulations.
Record Keeping: Maintain accurate and up-to-date records of pension scheme membership, contributions, and benefits.
Compliance: Ensure that the pension scheme complies with all relevant pension legislation, including the Pensions Act 2008 and the Auto-Enrolment Regulations.
Reporting: Submit the Declaration of Compliance every 3 years to The Pension Regulator, providing information about the pension scheme's performance and compliance with regulations.
Failure to Comply
The Pension Regulator have a number of powers to pursue employers to ensure they comply. Failure to comply with these responsibilities can result in penalties from the Pension Regulator, including fines and even criminal prosecution in serious cases.
Seeking Professional Help
If you are unsure about your responsibilities as an employer or need assistance with managing your workplace pension scheme, it is advisable to seek professional advice from a pension consultant or accountant. They can help you ensure compliance with regulations and protect the interests of your employees.
How Cashtrak Can Help
Auto Enrolment
Assessing Workforce Eligibility:
We help businesses assess which employees are eligible based on age and earnings criteria.
We maintain up-to-date records of employee details to ensure accurate assessments.
Setting Up Pension Schemes
We can assist in selecting and setting up suitable pension schemes that comply with legal requirements.
We liaise with pension providers to ensure seamless integration with the business's payroll system.
Processing Contributions:
Our talented payroll team calculate and process employee and employer pension contributions as part of our payroll process.
We ensure timely and accurate deductions and payments to the pension scheme.
Employee Communication:
We prepare and distribute mandatory communications to employees regarding their auto enrolment status and options.
We handle queries from employees about their pension enrolment and contributions.
Re-enrolment
Identifying Re-enrolment Dates:
We keep track of re-enrolment dates and ensure businesses are aware of their duties every three years.
Our powerful software and robust processes ensure we undertake the re-enrolment in a timely and compliance manner.
Re-assessing Workforce:
Similar to initial enrolment, we reassess the workforce to identify employees who need to be re-enrolled.
We update records and communicate with employees who are eligible for re-enrolment.
Managing Opt-outs:
We can manage the opt-out process for employees who do not wish to be re-enrolled.
And ensure that opt-out notices are processed correctly and within the specified time frame.
Declaration of Compliance
Preparing the Declaration:
We gather all necessary information to complete the declaration of compliance accurately.
Submitting the Declaration:
We can submit the declaration of compliance to The Pensions Regulator on behalf of the business.
And provide businesses with the record of the submission, any acknowledgements received and keep these records ourselves for the prescribed period of time.
Ongoing Compliance Monitoring:
We provide ongoing monitoring and updates to ensure businesses remain compliant with auto enrolment duties.
And offer support and guidance on any changes in regulations or business circumstances that may affect compliance.