Pensions Reform
MidlandHR and Pensions Reform
October 2012 will see the start of workplace pensions reform. As a leading supplier of talent management, workforce planning, HR and payroll solutions and services, MidlandHR are working closely with both The Pensions Regulator and the National Employment Savings Trust (NEST) to ensure that we are fully prepared to support organisations in complying with the new duties that this will bring.
This page of the website will be continually updated with the latest pensions reform information, developments and event details. Also keep a look out on the MidlandHR blog for pensions reform entries from our legislation experts.
Introduction to Pensions Reform
Established by The Pensions Act 2008, the process will start with the largest employers and be phased in over several years. This will involve employers having to automatically enrol employees who meet certain requirements onto a qualifying pension scheme (automatic enrolment).
Automatic enrolment
The requirement to automatically enrol employees is dependent on them meeting the following criteria:
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Aged between 22 and state pension age
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Working, or ordinarily working, in the UK
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Earning above a certain amount (currently proposed to be £7,475)
Staging date
This is the date at which employers need to begin auto enrolment and is based on the number of people in their PAYE scheme on 1 April 2012. Staging dates for organisations with 250 and more employees are provided on The Pensions Regulator’s website: Staging dates timeline | The Pensions Regulator. Staging time bands for employers with fewer than 250 employees in their PAYE scheme are also provided and will be updated with individual dates when these are published by the Department for Work and Pensions.
Staging dates for organisations with 50 or fewer workers have been delayed until June 2015 at the earliest.
Choosing a pension scheme
Employers will need to select a pension scheme that they can use for automatic enrolment. Whether this is an existing scheme or a new scheme set up specifically for this purpose it will need to meet certain Government standards. Factual information on the required criteria is provided in this Pension Regulator document www.thepensionsregulator.gov.uk/docs/Pensions-reform-pension-schemes-nov-2011.pdf
National Employment Savings Trust (NEST)
NEST is a qualifying pension scheme set up by the government to cater for the needs of low to medium income earners. NEST has a public service obligation to accept any employer but employers must bear in mind that there are other options available. All schemes should be considered to identify which one best meets the needs of their workforce. More information can be found on the NEST website.
We will be holding pensions reform seminars to deliver advice and guidance on how pensions reform will affect your organisation, regardless of the systems you use. The remaining dates and locations for the seminars are:
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Wednesday 16th May 2012, 09:30 - 14:00, London, Grand Connaught Rooms
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Tuesday 22nd May 2012, 09:30 - 14:00, Manchester, Mercure Piccadilly
With guest speakers from The Pensions Regulator and NEST, in addition to MidlandHR's legislation experts and consultants, the seminar will provide you with all the information you need to ensure readiness for pensions reform. This will include:
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High level overview of the employer duties
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What are the common queries?
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What are the finer points of the legislation
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Areas of confusion
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What are the benefits of NEST?
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Who is NEST most appropriate for?
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Where is the workload in implementation?
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Where is the workload in ongoing support?
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Project planning and preparation
The seminar will conclude with lunch but will be followed by a one hour breakout session for MidlandHR customers to cover:
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How MidlandHR will be supporting pensions reform via the product and services available
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Q & A networking session
The cost of the seminars is £185 + VAT.
Please book your place here, email learning@midlandhr.co.uk or call 0115 945 6000.
Useful links
Interactive tools on The Pensions Regulator website provide a simple overview of employer duties under pensions reform www.thepensionsregulator.gov.uk/tools.aspx
The Pensions Regulator website also provides detailed information and guidance on additional aspects of pensions reform www.thepensionsregulator.gov.uk/pensions-reform.aspx
More information
We will update this page with more information as it becomes available.