What is Auto Enrolment?
Auto Enrolment is about identifying eligible employees and enrolling them automatically at the right time to a qualified pension scheme and promptly communicates with them of their rights and entitlements. For those who don’t qualify automatically, you still have to send an appropriate letter informing of their status and right. You will have to process opt-out and opt-in notices from qualified and un-qualified employees. Auto enrolment requires you to assess your workforce regularly and at least once every pay period.
The law came into force for large employers from October 2012 and smaller employers will follow. Even if you already offer pension arrangements for your workers, you’ll still have some new obligations to meet.
- Find out your staging date (the date by which you are required by law to comply with the AE legislation). Refer section 8.1 for more details.
- Identify and provide a qualifying scheme for eligible Jobholders (Jobholder is the one who works in the UK irrespective of the Nationality or Duration)
- Automatically enroll all eligible jobholders onto the scheme.
- Pay employer contribution for eligible jobholders to the scheme.
- Inform all eligible jobholders that they have been automatically enrolled and they have the right to opt-out if they want to do so.
- Offer Pensions schemes to the non-eligible Jobholders and entitled workers.
- Register with the Pension Regulator and provide details of your qualifying scheme and the number of people that you have automatically enrolled.
For further guidance, we recommend you refer to http://www.thepensionsregulator.gov.uk/employers.aspx
How Green Pelican helps you to comply?
The Auto Enrolment will be an online solution that will run along with your Green Pelican software as an add-on module. The AE module is scheduled to be launched in Aug 2013 and will host the following features. Except setting up the pension schemes at the company level, everything else is automatically processed by the system taking away the stress and risk associated with manual processing.
- Pension Setup
- Workforce Assessment
- Automatically enroll the Eligible Employees
- Auto-generate and email letters to the employees
- Facilitate Opt-out and Opt-in Notices
- Process Opt-in Notices
- Process Opt-out Notices
- Calculate Pension Deductions & Refunds
- Record Keeping & Activity Tracking
- Data export to Pension Providers
Your candidates can use the online facility to login and process their Opt-in/Opt-out requests.