8 ‘Bewares’ when setting up Auto Enrolment

Get ready for Auto Enrolment and be aware of a few pitfalls before you embark!

  1. Don’t confuse your staff benefits – If part of an employee’s remuneration package includes the benefit of a non-contributory pension scheme, they may find themselves now having to contribute – or choose to opt out of the scheme.
  2. Keep an eye on your pension contributions – Auto enrolment could change the % pension contributions made by employers and employees – ensure you are not unfairly penalising employees against their contract.
  3. Don’t overlook the small print – Employers should research employment law when changing pension contracts for existing employees.
  4. Don’t work with the wrong data – As tempting as it is to plan ahead, ‘trial’ auto enrolment runs do not make ‘go live’ easier as all criteria processed is date dependent.
  5. Get your housekeeping in order – Legacy or tiered pensions schemes and/or multiple PAYE schemes can cause employers to have a portfolio of redundant or infrequently used pension schemes. Employers should take the opportunity to rationalise their benefit packages.
  6. Don’t ASSUME – The People’s Pension and NEST do not communicate with employees who are not opted in or have opted out – Employers need to fill this gap.
  7. Keep everyone in the picture – If an employer postpones or delays new starters the pension provider will not know of their existence and will not communicate with the employee.
  8. Don’t rely on hearsay and smoke signals – Include auto enrolment notification periods & criteria as part of your new employee contract of employment/handbook. This should include delayed start criteria and opt out information routes.  Make sure you set the table before an employee starts working for you.

Do you require Auto Enrolment advice?  Contact us on 0117 9323444 or email: enquiries@payrollsolutionsltd.co.uk