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AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The.

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Presentation on theme: "AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The."— Presentation transcript:

1 AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority

2 For professional advisers only People are living longer Source: Office for National Statistics, Pension Trends Chapter 2, 16 February 2012.

3 For professional advisers only Its unaffordable Source: Office for National Statistics, Pension Trends Chapter 5, 27 October 2011.

4 Happy 100 th birthday 1 In 1917 = 24 Telegrams In 1952 = 255 Telegrams In 2007 = 8,439 Telegrams By 2046 = 214,700 Telegrams 1 Source: The official website of The British Monarchy, January 2012

5 AUTO-ENROLMENT All businesses Auto-enrol all eligible employees (including directors) Qualifying Workplace Pension Scheme By your staging date

6 STAGING DATE Based on the number of employees as at 1 st April 2012 The Pensions Regulator – inform employers 12 months prior thepensionsregulator.gov.uk – PAYE Ref.

7 STAGING DATE 250 plus employeesOct 2012 – Feb /4/14 - 1/4/15 Less than 501/6/15 - 1/4/17 New employers between1/4/ /9/17 Staging date between1/5/17 - 1/2/18

8 ELIGIBLE EMPLOYEES Eligible jobholder Entitled worker Non-eligible jobholder

9 PENSIONABLE EARNINGS Qualifying earnings – includes bonus, overtime, sick pay, maternity/paternity, adoption pay (between £5,668 - £41,450 p.a.) (increased annually) 7% of all earnings 9% of basic pay

10 PHASING IN Qualifying earningsTotal Employer minimum Oct 12 – Sept 172%1% Oct 17 – Sept 185%2% Oct 18 onwards8%3%

11 PHASING IN 7% of all earnings Total Employer minimum Oct 12 – Sept 172%1% Oct 17 – Sept 185%2% Oct 18 onwards7%3%

12 PHASING IN 9% of basic pay Total Employer minimum Oct 12 – Sept 173%2% Oct 17 – Sept 186%3% Oct 18 onwards9%4%

13 OPTING OUT Employees can opt-out at any time Within one month – refund of contribution After one month – no refund DIRECTORS – TAKE CARE!!

14 WHO WITH? Insurance companies Scottish Life, Standard Life, Aviva Scheme by scheme consideration Number of employees, average age\salary\contribution Profitable At 1% each – probably not

15 NATIONAL EMPLOYMENT SAVINGS TRUST (NEST) Low to medium earners More expensive than insured 1.8% deducted off each contribution plus 0.3% p.a. annual management charge Limited fund choice Cautiously invested even for younger people Currently doesnt allow transfers in or out Provider of last resort

16 SANCTIONS Stage 1 – Compliance notice - time scale Stage 2 – Fixed penalty £400 Four weeks minimum to sort it out Stage 3 – Daily penalties 1-4£ £ £10,000

17 SUMMARY Start now ,000 employers per month – staging date Industry wont cope Take advice on: -Definition of pensionable pay -% contributions -Which provider

18 AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority


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