Automatic Enrolment

The Morris Palmer integrated Automatic Enrolment package is an option for employers throughout the UK looking for a simple and complete solution to the challenges presented by Automatic Enrolment.

Please read on and find out how we can take care of all of your responsibilities under Automatic Enrolment including the operation of your payroll. Our integrated solution will ensure you remain fully compliant with the new laws.

You will also find full details of our charges.

What is Automatic Enrolment?

Automatic Enrolment (AE) is the statutory requirement enshrined in law under the Pensions Act 2008 for workplace pension provision. Employers are required to set up and administer a pension scheme on behalf of their employees and make contributions into the scheme subject to a series of variable conditions.

The process of establishing AE is both complex and intricate and there are severe penalties for non-compliance with the statutory requirements.

You can find the date that you need to start operating your pension scheme under AE, your staging date, by looking at “The Pension Regulator” website here.

Choice of pension provider and the unique Morris Palmer solution

The choice of pension provider is the key decision that the employer has to make under AE.

The Association of British Insurers (ABI) lists on its website all established pension providers who are offering qualifying AE schemes. Details can be found here.

An alternative to opting for an ABI established pension provider is the National Employment Savings Trust (NEST) set up under the Pensions Act 2008 to support the introduction of AE.

Another option is to place your AE responsibilities with an AE specialist provider who would tend to invest the pension premiums into a “master trust” or “group personal pension”.

If you feel that you require specific advice on pension provider options, or if your individual employees would like tailored pension advice we can put you in touch with a suitably qualified independent financial adviser.

Our integrated solution is unique. By deciding to use our integrated solution you will be opting to place your employees’ pensions with Legal and General. A global operator in financial services, Legal and General is one of the most established pension providers in the UK with over £450billion under investment as at 31st December 2013.

Many providers are not prepared to offer AE solutions for small employers. By combining with Morris Palmer you can take advantage of a commercial, flexible pension plan with Legal and General regardless of the size of your workforce.

By joining our scheme you will enter a Legal and General WorkSave Pension Plan. The annual management charge is a very competitive 0.5% of the contributions made to the pension fund. This is paid from the fund and is not a cost to you as the employer.

More details on the Pension Plan itself can be found on the Legal and General website here.

In any event, whichever pension provider you choose, once you have made your decision we can fulfil every single administrative duty on your behalf.

How does it work in practice?

We offer a turnkey solution to all of your subsequent employer requirements and responsibilities under AE. The work that we perform on your behalf includes:

  1. registering your scheme with The Pensions Regulator in advance of your staging date
  2. advising you on postponement options and their implications
  3. establishing your scheme with your pension provider
  4. advising you on your statutory responsibilities concerning contribution levels
  5. advising you on salary sacrifice opportunities which may mitigate pension contribution costs
  6. identifying which of the three categories of “worker” is applicable to each of your employees
  7. assisting in the preparation of letters for you to write individually to each of your employees explaining the AE process, the individual employee’s options and responsibilities
  8. processing your payroll including the calculations and deductions required in relation to both employer and employee pension contributions
  9. collecting pension contributions from you
  10. processing payments of pension contributions to your chosen pension provider
  11. dealing with opt-ins, opt-outs and joiners as necessary, dependent upon both age and earnings
  12. ensuring that all statutory communications and reports to you and your employees are accurate, complete and issued on a timely basis
  13. reviewing your workforce on a rolling basis and ensuring full ongoing compliance at all salary, age and opt-in trigger points

The work can be subdivided into two components. The first is establishment of the scheme and the second is the ongoing processing costs through the payroll.

Our charges

Establishment costs

The establishment costs cover all matters set out in points 1) to 7) above. If you join the scheme we have established with Legal and General then our charges for performing this work are set at £250 plus £45 per employee. If you decide to use an alternative pension provider then our charges for this work will be subject to an additional £50 per employee as we will incur extra time in liaison and adaptation to our internal systems. These establishment costs are one-off costs.

Ongoing processing costs

The ongoing processing costs cover all matters set out in items 8) to 13) above. These costs are payslip driven and, on the basis that you join the scheme we have established with Legal and General, our charges amount to an additional £1 per payslip. If you choose another pension provider we will provide details of our charges once we have reviewed the appropriate middle-ware functionality.

Conclusion

AE is a statutory requirement which must be embraced by all employers with “eligible” employees. We are pleased to offer you a packaged, integrated solution that places your employees’ pensions in the hands of one of the UK’s most prestigious pension providers.

To receive more details on the unique Morris Palmer integrated AE solution, please contact us today.