Employers are being urged to make sure their business is ready for Auto Enrolment – or face the consequences.
Auto Enrolment involves employers having to place all eligible employees into a qualifying pension scheme.
It will undoubtedly have significant implications for businesses off all sizes.
And firms who are leaving it late before putting their plans in place are in danger of being told ‘thanks but no thanks’ by pension providers.
There are warnings of an auto-enrolment ‘capacity crunch’, with insurers struggling to meet the demands of employers as the reforms are rolled out to small and medium sized businesses.
Indeed, reports have emerged this week that Scottish Life is turning away automatic enrolment business from firms that are less than six months from their staging date due to concerns they will be unable to deal with the administrative workload.
Scottish Life, a specialist pension provider, is part of the Royal London Group who are the UK’s largest mutual life and pension company.
A Scottish Life spokesperson has said the provider usually requires a lead-in time of at least six months to prepare employers’ payroll systems and roll out communications to staff ahead of their Auto Enrolment staging date – and that Scottish Life may well only accept Auto Enrolment business from new or existing customers that have less than six months until their staging date if the employer agrees to meet strict criteria.
Meanwhile, Legal & General will not confirm whether it has a specific cut-off period, although it is being reported that the provider will not deal with employers that are within three months of their staging date.
If you are an employer with concerns over Auto Enrolment, whether it is your staging date or anything else, then let us at Lifetime come to your aid.
We can offer guidance and assistance in preparing employers for their new duties and making sure they meet the on-going requirements set out by the regulator. We have all the tools to provide effective advice and help reduce the burden on your business, including a specialist pension team on hand to help you.
Ease the stress of Auto Enrolment. Contact Lifetime now on 01226 208600 and ask for the Pensions Department, or email firstname.lastname@example.org
Don’t bury your head in the sand. Auto Enrolment is not going to just pass you by.