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Automatic enrolment and triennial re-enrolment
Charles Counsell Executive Director - automatic enrolment, The Pensions Regulator
CFO conference
Thursday 18 June 2015
Agenda
• Why automatic enrolment?
• Update on progress so far
• Challenges to come
• Re-enrolment - what you have to do
• Useful links
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission.
Why enrolment?
• Life expectancy rising
• Less people saving
• Aim to increase private
pension saving in the UK
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Automatic enrolment journey20022002
20042004
20082008
20052005
20102010
20112011
20122012
201520152015 – 2017SMEs still to auto enrol
Pensions Commission launched
Pensions Act 2004creates The Pensions Regulator
Pensions Commission recommends automatic enrolment
Pensions Act 2008automatic enrolment established; The Pensions Regulator given role to maximise employer compliance; NEST created
Coalition government reviews automatic enrolment
July 2012 - duties apply and first employer enrols staff
Amendments to rules
5m+ employees automatically enrolled
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Staging profile
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Update on progress so far
• More than 46,000 employers have met their duties
• More than 5.2 million jobholders have been enrolled
• Approximately 75% of workforce now in pension schemes
• 99% of large employers have complied without us needing to use our powers
• Vast majority displaying a pro compliance behaviour
• Only used our powers on 1,962 occasions, including
– 367 Fixed Penalties Notices
– 4 Escalating penalties
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Challenges to come
• 1.3 million small and micros (SMEs) still to enrol
• Why are they different?
400,000 small
900,000 micro
• Non-eligible jobholders
• 75% rely on advice
• Not familiar with pensions
• Behaviours
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
What we are doing about it (1)
SMEs
• All employers will receive a letter from The Pensions
Regulator by the summer of 2015 to inform them of their staging date.
• A step-by-step online guide
• We want employers to go online and find out what they need to do and by when – our landing page will direct them to useful “starter” information:
Staging date tool
Planning tool
Step by step guide
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
What are we doing about it (2)
Business advisers
• More than 75% of small and micro employers expect to turn to
their advisers for help and support with their automatic enrolment duties.
• We want business advisers to go online and “get ready” for automatic enrolment. We want them to see what their clients will see. We will direct them to:
Sign up for regular ‘news by email’ updates
Online guide
Planning tool
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Re-enrolment - what you have to do (1)
• All employers have to re-declare 3 years (+/- 3 mths) from 3rd anniversary of first declaration
• Two possible journeys – dependent on whether you have workers to re-enrol or not
• First step is to identify if there are staff to re-enrol:
workers who meet the criteria to be an eligible jobholder on the employer’s chosen re-enrolment date, and
who are not active members of a qualifying pension scheme and
who opted out or ceased membership more than 12 months before the automatic re-enrolment date
• Postponement cannot be used for re-enrolment
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Re-enrolment – what you have to do (2)
Are there staff to enrol?
• If yes, choose a date to re-enrol and then re-declare within two months
• If no, re-declare on 3rd year declaration anniversary
• Employers have a duty to re-declare compliance with The Pensions Regulator
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
The journey from us
• Research indicates that large employers already have a good understanding of what they need to do
• Communications approach to employers and intermediaries in final stages of development
• White mail to senior person responsible (i.e. CEO) and emails to secondary contact (implementer)
• Additional support:
Essential Guide to Re-enrolment
AE checklist
web content
news by email
detailed guidance
Employers with re-enrolment date this year, will be written to twice before their window opens
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission
Webpage
• http://www.thepensionsregulator.gov.uk/employers/automatic-reenrolment.aspx
• Step-by-step online guide to automatic enrolment:
• The essential guide to automatic enrolment: www.tpr.gov.uk/ae-essential-guide
• Help your clients prepare for automatic enrolment: www.tpr.gov.uk/help-clients-prepare
• Staging date tool: www.tpr.gov.uk/staging-date
• Nominate a contact: www.tpr.gov.uk/nominate
• Planning tool: www.tpr.gov.uk/planner
• 6 month checklist: www.tpr.gov.uk/six-month
• Subscribe to our news by email: www.tpr.gov.uk/subscribe
• Latest research on automatic enrolment: www.tpr.gov.uk/research
Automatic enrolment – useful links
This presentation remains the property of The Pensions Regulator. The contents of these slides must not be reproduced without express permission