New workplace pension scheme for smaller businesses

Time for a fresh approach

Auto-enrolment is a government scheme designed to help people build up their retirement savings through a workplace pension and has been a statutory duty on employers to offer their employees access to a suitable workplace pension since 2012. Auto-enrolment has had a positive impact in more people saving for their future and preparing for their retirement but it also places onerous responsibilities on employers. 

Businesses with at least one employee must adhere to the auto enrolment rules and all eligible employees must be enrolled in a workplace pension scheme automatically. Full-time and part-time employees must be auto enrolled in their workplace pension scheme if they:

• work in the UK
• are at least 22 years old, and have not reached State Pension age
• earn more than £10,000 a year

In addition, employers are required to undertake a ‘re-enrolment exercise’ every three years and complete their re-declaration of compliance. 

The Pensions Regulator has produced employer guidance on automatic enrolment with help specifically aimed at smaller employers. If you already have a workplace pension scheme, check with the Pensions Regulator if you can use it for automatic enrolment: www.thepensionsregulator.gov.uk/en/employers.

Reviewing your workplace pension scheme

Reviewing your pension should take place every three years.  In addition to your statutory re-enrolment duties, if you haven’t reviewed your pension scheme for some time you may be missing out on:

• A contribution structure that attracts and retains talent.
• Improved communication with you and your employees.
• Increased Pension functionality.
• Access to investment solutions that include ESG considerations.
• Scheme Governance and management.
• Employee engagement, retention and recruitment.
• An opportunity to review the tax efficiency of your scheme as employer and for your employees.

Businesses grow and change - and the pensions market moves fast - so you could easily find on review that your current workplace pension scheme's strategy no longer adequately meets the needs of your business or your employees. Let's take a fresh look.

Introducing a new workplace pension scheme for smaller businesses

As an employer, it is your responsibility to ensure that the workplace pension you are offering is the right option for your people and business. We know this can be a challenge as many smaller businesses have a lot of demands on their time.

That’s why we have worked closely with Royal London, a leading pension provider, to offer our smaller business clients a workplace pension plan that provides a lower Annual Management Charge not normally available to smaller schemes, and a wide-ranging pension solution with valuable features for your business and your employees.  

This pension plan is intended to meet the needs of smaller business with 5 employees or less and where, because of the plans favourable terms and features, we would not normally undertake a review of the wider market. For businesses larger than this there are a number of different options available, which we'd be delighted to discuss with you.