How to…audit your auto-enrolment scheme compliance

Tasha HartleyService Consultant9th October 2014

Topics

• The importance of a scheme and process audit

• The four key areas –

• Auto-enrolment scheme

• Communication processes

• Assessment and contribution processes

• Scheme certification• Wider scheme governance

• Questions

Why do I need to audit my scheme?

23Auto-enrolment

compliance notices

Warnings of more to

come!

5 inspection of

premises/demands for documentation

Assessment and

contributions

Communication processes

Auto-enrolment

scheme

Scheme certification

Auditing your…auto-enrolment scheme

• Is your scheme free from….

- barriers to entry?

- requirements to provide information?

- active member discount pricing?

- member borne commission?

• Does your scheme meet…

- minimum requirements for its pension scheme type?

- the 0.75% charge cap?

• Have you maintained…

- all required documentation for the required period of time?

• Does your scheme provide…

- access to a default investment option?

Top Tips

Auditing your…communication processes

• Correct communications to the correct people

- Audit record

• Wording

- Regulated information

- Inducement free

- Accurate and up to date

• Timing

- Delivered on time

- New joiner notification

Top Tips

Auditing your…assessment and contribution processes

• Assessment

- Has every one who needs to be assessed been assessed?

- LLP’s, temporary staff, self-employed

• Contributions

- Meet minimum requirements

- Correct deductions

- Application of refunds

- Fund allocation – 22nd of the month

- Salary sacrifice application

Top Tips

Auditing your…scheme certification

• Separate certification

- Employee groups

- Individual schemes

• Audit

- Before staging date

- Where’s the certificate?

• Re-certification

- Every 18 months

- Significant change

Top Tips

Wider scheme governance

Contributions DecumulationInvestments

Protection of assets

Value for moneyAdministration

Summary

• Not whether you breach, but how you rectify it

• Represents best practice

• Now is the time to act

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E-mail - info@johnsonfleming.com

Guide - www.johnsonfleming.com/guide/9

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