Firms 'running out of time' to get workplace pension advice

By MHA

13 Sep 2013

Website

Lancashire businesses are being warned they face a financial and HR ‘double whammy’ by leaving it too late to comply with changes to workplace pensions.

New auto enrolment rules, where companies have to automatically enroll their employees in a qualifying pension scheme, are currently being phased in by the government with the largest employers already having to comply.

The sliding scale of so-called ‘staging dates’ for auto-enrolment will see some firms with fewer than 250 employees having to comply from April 2014. Businesses have a choice of using their own choice of qualifying pension scheme, or a government administered scheme known as NEST.

The process will put huge administrative and financial burdens on companies, with many choosing to outsource its implementation to accounting and payroll providers to ensure they are compliant.

But Dave Gleeson, a chartered financial planner at Moore and Smalley, and an expert on the new rules, believes many businesses are in danger of leaving it too late, which could not just cost them financially, but may also risk damaging relations with their employees.

He said: “Many companies still do not understand just how big a change these new rules are having on businesses. It is not simply a case of setting up a pension arrangement, but complying with some very detailed regulations – both initially and on an ongoing basis. Companies need to start planning at least six months, but ideally 12 months before their staging date.”

According to Dave, there are two major dangers as the staging dates for smaller companies get closer over the next 12 to 18 months. The first is that the sheer number of businesses needing advice is likely to result in a lack of professional advisers being available to help them as they will be too busy to assist the late comers. This may in turn lead to any increase in professional costs.

The second is that the choice of providers my become more limited as insurers become more selective in accepting new schemes with potentially only the government’s NEST scheme being duty-bound to accept any new business.

Dave added: “Businesses in this position should consider the design of their scheme and their choice of provider early to ensure their staff are getting an appropriate solution. Failure to do this could result in potential staff dissatisfaction.” As part of a team helping businesses to prepare for auto enrolment, Dave says businesses need to be aware of their staging date and put steps in place to ensure they are compliant, including seeking professional advice as soon as possible.

Enjoyed this? Read more from MHA

Latest news

1

Blackburn College lights up CyberFest with a focus on next-generation cybersecurity Umayr Mir talks a visitor through The BLIS Suite

Blackburn College lights up CyberFest with a focus on next-generation cybersecurity

17 Feb 2025

2

Delivering the Wright kind of care Eric Wright care

Delivering the Wright kind of care

17 Feb 2025

3

Historic hotel to get ‘significant investment’ Shard Riverside

Historic hotel to get ‘significant investment’

17 Feb 2025

4

Double delight for Vincents two newest solicitors Beth Laws and Yasmine Dragan at Vincents Solicitors’ office in Winckley Square Preston

Double delight for Vincents two newest solicitors

14 Feb 2025

5

Bowker Motor Group celebrates record number of apprentices in 40 year history Bowker Preston BMW Apprentices.png.png

Bowker Motor Group celebrates record number of apprentices in 40 year history

13 Feb 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
Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces
Supporting Women's Health in Your Teams A Path to Success-3.png.png
LBV Hub Webinar
21 Feb 2025 - 21 Feb 2025

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces

*, Online, *

12:30 - 13:30

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

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

Women's Health champion training
Supporting Women's Health in Your Teams A Path to Success-6.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Women's Health champion training

*, Online, *

10:00 - 16:00

Level 3 Emergency First Aid at Work Course - In Person
RKMS ACADEMY LOGO - BLACK AND ORANGE.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Level 3 Emergency First Aid at Work Course - In Person

RKMS Group , Blackpool, FY42DP

09:30 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
PM and M event
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Preston Freelancer Meet-Up: February
Freelancer Meet-Up Feb.png.png
LBV Hub Networking
26 Feb 2025 - 26 Feb 2025

Preston Freelancer Meet-Up: February

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:30

StackedX with PM+M and CFO Techstack
LBV Hub Seminars
27 Feb 2025 - 27 Feb 2025

StackedX with PM+M and CFO Techstack

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Kickstart Networking - Crazy Golf at Level, Preston
Kickstart Crazy Golf.png.png
LBV Hub Networking
27 Feb 2025 - 27 Feb 2025

Kickstart Networking - Crazy Golf at Level, Preston

Level, Preston, PR1 1HT

16:00 - 18:00

Post Employee Ownership Trust: What's the story?
LBV image.jpg.jpg
LBV Hub Seminars
04 Mar 2025 - 04 Mar 2025

Post Employee Ownership Trust: What's the story?

Brabners, Preston, PR5 6AW

11:00 - 12:30

North West (Preston) Finance Leaders Networking Event
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2025

North West (Preston) Finance Leaders Networking Event

Farington Lodge Hotel, Stanifield Lane Farington, Preston, PR25 4QR

08:00 - 10:00

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 LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin