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Pegasus Software

Pegasus Software. Workplace Pensions Reform. Pegasus Software. Workplace Pensions Reform. Steve Power Product Specialist. Agenda. What is auto enrolment? . New Pensions law started in October 2012 Employers will have to auto enrol workers into Pensions. National Employment Savings Trust .

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Pegasus Software

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  1. Pegasus Software Workplace Pensions Reform

  2. Pegasus Software Workplace Pensions Reform Steve Power Product Specialist

  3. Agenda What is auto enrolment? • New Pensions law started in October 2012 • Employers will have to auto enrol workers into Pensions National Employment Savings Trust • Who are NEST & what do they offer Coffee Break

  4. Agenda Operating auto enrolment within Opera 3 • Activating & running auto enrolment at your Staging Date • NEST Integration • Communicating with your workers – Using XRL • Storing Documents – Using Document Management Pegasus Web Xchange • What is Pegasus Web Xchange • Overview of Payroll Self Service

  5. Auto Enrolment What is auto enrolment? • New Pensions law started in October 2012 • Employers will have to auto enrol workers into Pensions • Pay into that Pension Scheme • Inform their workers about auto enrolment

  6. Auto Enrolment Why are the Pension Regulators doing this? • Encourage private pension saving • People living longer • Many not saving enough • Over 50% of adults have no Private Pension savings • Provide another source of Income when retired • State Pension is only £110.15 a week for a single person • Employers to enrol worker automatically to help • people save • Estimated 8 million worker will be auto enrolled • An individual can opt out if required

  7. Auto Enrolment How will this be implemented? 1. Nominate a contact 2. Know your staging date 3. Assess your workforce 4. Review your pension arrangements 5. Communicate the changes to all your workers 6. Automatically enrol your 'eligible jobholders' 7. Register with The Pensions Regulator and keep records 8. Contribute to your workers' pensions

  8. Nominate a point of contact Nominate a point of contact Log into the Pensions Regulators Website www.TPR.gov.uk/autoenrol-nominate

  9. Nominate a point of contact

  10. Know your staging date Knowing the staging date? The date when the new law is ‘switched on’ for employers is known as the ‘staging date’. The staging date for employers varies according to the number of employees they employ.

  11. Know your staging date

  12. Know your staging date

  13. Know your staging date Knowing the staging date? www.ThePensionsRegulator.gov.uk www.TPR.gov.uk

  14. Know your staging date

  15. Assess your workforce What do you mean by assessing your workforce? You need to assess the category a worker falls into So how can they be categorised? • 3 Category • Eligible job holder • Non-eligible holder • Entitled worker • 2 Thresholds • Auto enrolment threshold (£9,440) • Qualifying earnings lower threshold (£5,668)

  16. The different types of workers Workers Jobholders • Aged 16-74 • Earning below £5,668 Have a right to join • Aged 22-SPA • Earning above £9,440 Must be automatically enrolled • Aged 16-74 • Earning above £5,668 but below £9,440 OR • Aged 16-21 or SPA-74 • Earning above £9,440 Have a right to opt in Entitled workers Eligible jobholders Non-eligible jobholders

  17. State Pension Age Remember, the State Pension Age is changing

  18. Review your pension arrangements Who actually is a worker? • Definition of a worker • Works under a contract of employment • Has a contract to provide work or services personally (i.e. they cannot send a substitute or sub-contract the work) • Agency workers • Seafarers • Offshore workers

  19. Review your pension arrangements What do we need to do in order to review our pension arrangements? • Select Qualifying Pension Scheme • Auto enrolment criteria • Qualifying criteria • Minimum requirements

  20. Review your pension arrangements • Minimum requirements - Contribution levels • Qualifying earnings (£5,668 – £41,450) • Certification

  21. Review your pension arrangements • Phased Introduction • Qualifying earnings (£5,668 – £41,450)

  22. Review your pension arrangements • Phased Introduction – Certification • Tier 1 • Tier 2 • Tier 3

  23. Review your pension arrangements What if I have an existing pension scheme? Does that pension scheme meet the criteria for a Qualifying Scheme Can I use my existing pension scheme to auto enrol other workers? • If confirmed as Qualifying Scheme then ‘yes’ • Or select other Qualifying Schemes • Other • NEST

  24. Communicate the changes to all your workers What type of communications will I need to provide to my workers? • Entitled worker • Rights to “join” a pension scheme • Non-eligible holder • Right to “opt-into” an auto enrolment scheme • Eligible job holder • Information about the auto enrol process

  25. TPR – Helpful Tools

  26. TPR – Helpful Tools

  27. TPR – Helpful Tools

  28. TPR – Helpful Tools

  29. TPR – Helpful Tools

  30. TPR – Helpful Tools

  31. TPR – Helpful Tools

  32. TPR – Helpful Tools

  33. TPR – Helpful Tools

  34. Automatically enrol your 'eligible jobholders' How do I auto enrol 'eligible jobholders'? • Must enrol within the joining window • Information to pension provider • Information to eligible job holders

  35. Automatically enrol your 'eligible jobholders' Pensions Regulator – www.tpr.gov.uk NEST – www.nestpensions.org.uk DWP – www.dwp.gov.uk

  36. Automatically enrol your 'eligible jobholders' How do I auto enrol 'eligible jobholders'? • Must enrol within the joining window • Information to pension provider • Information to eligible job holders • Activate membership to the pension scheme • Opt out period • Eligible job holders can opt out using “opt-out notice” • Contributions made during period are returned

  37. Automatically enrol your 'eligible jobholders' Opt-out Notice • Details to identify the jobholder • Employer / Jobholder Name / NINO / DoB / etc. • What you need to know statements to the jobholder • Your employer cannot ask or force you to opt-out • If your are asked to leave contact www.tpr.gov.uk • If you change your mind you may be able to opt back in • If you change job your new employer will normally put you back into pension saving • If you have another job, your other employer might put you into pension saving. This notice applies only to the employer named above

  38. Opting in and joining a pension scheme How do I handle opt ins & joining requests? • Non eligible jobholders • Right to opt in to the auto enrolment Pension Scheme • Opt in notice • Entitled workers • Right to join a Pension Scheme • Joining notice

  39. Post Auto Enrolment What are my on-going responsibilities? • On-going responsibilities • Paying contributions • Record keeping • Manage opt-outs / opt-ins

  40. Postponement Can we postpone the auto enrolment process? • Postponement up to 3 months • Employer postpones for employees • New starters • Workers becoming eligible Job holders

  41. Register with The Pensions Regulator What do I have to do to register with The Pensions Regulator? • Register within 4 months of staging date • Details of employers business • Detail of qualifying schemes used • Number of eligible job holders auto enrolled • How • On-line

  42. Register with The Pensions Regulator

  43. Register with The Pensions Regulator

  44. Safeguards So what safeguards are in place to protect employees? • At Job interview must not screen applicants based on “opt -out” • No inducements • Extend or renew a contract • Offer a one-of payment or a higher salary • Offer a promotion • Prohibitive activity • - Withhold a promotion • - Withhold a pay increase • - Redundancy or dismissal

  45. Summary 1. Know your staging date 2. Assess your workforce 3. Review your pension arrangements 4. Communicate the changes to all your workers 5. Automatically enrol your 'eligible jobholders' 6. Register with The Pensions Regulator and keep records 7. Contribute to your workers' pensions

  46. Pegasus Software Coffee Break

  47. Pegasus Software Implementing Auto Enrolment in Opera 3

  48. Implementing Auto Enrolment Recording your Staging Date Payment Profiles

  49. Implementing Auto Enrolment Maintenance / Payment Profile / Auto Enrolment

  50. Implementing Auto Enrolment Activating Auto Enrolment Payment Profiles Pension Schemes At Your Staging Date Assessing Your Workforce Opting Out Registering with Pensions Regulator

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