Automatic enrolment – make that New Year’s Resolution

By Azets

20 Jan 2014

More than two million workers have now begun saving into a Workplace Pension Scheme as a result of automatic enrolment, according to figures released by The Pensions Regulator.

by John Davenport, Cassons

This is a mere drop in the ocean when you consider by the General Election in 2015 this figure will have increased to 4.3 million workers and by 2018 to over 15 million employees.

This year alone will see a leap in the number of firms affected, with tens of thousands of medium sized employers introducing automatic enrolment. The Pensions Regulator is urging all employers to make sure they know when they must introduce the changes.

Charles Counsell, executive director of automatic enrolment at The Pensions Regulator said: “If they have not done it already I would hope the first thing every employer does when they get back to work after the Christmas break is to check their staging date and prepare for automatic enrolment. The clock is ticking and if employers don’t plan ahead, they could face unnecessary challenges and costs in the New Year”.

Employers who are not working on an automatic enrolment plan at least six months prior to their staging date are risking non-compliance and this will almost certainly result in a more complex and more expensive solution. It has been reported that pension providers are approaching a capacity crunch and even refusing employers who are within a six month lead in time to their staging date. Don’t just assume the first provider you contact will be able to help you.

In addition to the above, one of the most surprising aspects is that it’s not all about the pension scheme. All employers are going to have to consider their payroll system and contracts of employment. Let’s consider payroll first. The ideal system will assess the workforce, produce relevant paperwork for each category of worker, calculate contributions, produce a file for onward transmission to the pension provider, deal with opt-outs, provide audit trails, cope with salary exchange, and do the auto enrolment all over again every three years. Have you checked what services your payroll provider is offering? And, if payroll can assist you, at what cost? And, will the service be available from your staging date?

And then there are the employment contracts. Does your standard contract even mention pensions? If not, it will need to. If it does, is pension scheme membership linked to completion of a probationary period? Does the contract specify the basis of contributions? Is age mentioned in contracts?

In summary, in addition to identifying an appropriate pension scheme, we would also recommend that employers:

• assess their workforce to identify who should be auto-enrolled

• check their payroll systems to ensure they will support auto-enrolment

• ensure that personnel records are up to date • review existing contracts and make any required amendments

Latest news

1

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

2

First speakers confirmed for Lancashire Business Day Dave Walker with Richard Slater at Lancashire Business Day

First speakers confirmed for Lancashire Business Day

08 Oct 2025

3

Hemmings steps down as PNE chairman as hunt begins for new investors Craig Hemmings

Hemmings steps down as PNE chairman as hunt begins for new investors

08 Oct 2025

4

Chamber calls for three council county Lancashire County Council County Hall

Chamber calls for three council county

08 Oct 2025

5

Victorian Plumbing reports strong financial performance Victorian Plumbing Leyland

Victorian Plumbing reports strong financial performance

07 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Empowering Franchise Growth in the North West
Empowering Franchise Growth in the North West event
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering Franchise Growth in the North West

Forbes Solicitors, Sceptre Way, Walton Summit Centre, PR5 6AW, PR6 6AW

08:00 - 10:00

Empowering franchise growth in the North West
TFA Event - Empowering Franchise Growth.jpg.jpg
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering franchise growth in the North West

Forbes Solicitors Sceptre Way Walton Summit Centre , Preston, PR5 6AW

08:00 - 10:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin