Employers Consultancy Services Support for complexity and flexibility
Introduction The auto enrolment rules are complex and allow a great deal of flexibility for employers. We offer a simple, automated solution for employers with straightforward circumstances who want a straightforward solution, but we recognise that some employers will need a more personal approach. Our team of expert consultants are here to help if you have complex circumstances or want to explore your options. Your circumstances are complex if: You have an existing pension scheme for some or all of your employees You are close to, or have passed, your staging date You have a complex payroll structure and/ or are not sure whether all the people who work for you are covered under the legislation You have complex needs for some other reason. In these cases, you must speak to one of our consultants and you will not be able to use our automated online solution without support. 1 of 10
A Personal approach You need a more personal approach if: You want extra support to set up your pension You want to use Salary Exchange You want to design your own pension scheme You do not want to use a scheme with the pre-set features built into our online automated solution You would like to consider your total reward strategy and additional employee benefits You need extra support with employee communications You need to review your HR risk management, such as key man risk You would like to offer tailored pensions consultancy or wider financial reviews to higher earners Making the complex simple If you have complex needs, you need support from an adviser you can trust. Creative Auto Enrolment is part of the Creative Benefits group of companies, which includes an award-winning firm of Chartered Financial Planners and specialist employee benefits and auto enrolment consultancy teams. We have decades of experience with helping hundreds of employers implement workplace pensions and benefits our chairman alone has been in the industry for over 50 years. 2 of 10
Your options - at a glance Your Options - at a glance Decision point Automated online Consultancy COST Cost to employer 20 per month Fees as agreed Cost to employee COMPLEXITY Pension charges within government charge cap Pension charges within government charge cap Staging date more than 2 weeks away Staging date less than 2 weeks away or in the past Staging date to be changed (free helpdesk support required) Existing pension scheme Complex payroll structure Unusual staffing arrangements leading to uncertain worker status Salary Exchange to be implemented FLEXIBILITY One auto enrolment scheme for all employees Multiple schemes with different rules for different categories of employees 3 of 10
FLEXIBILITY (cont) Decision point Automated online Consultancy Minimum contributions on a Qualifying Earnings basis Support to set up and agree alternative contributions and earning basis with the Pensions Regulator Pension invested with Scottish Widows Pension invested with any pension provider Default fund and five alternatives Jobholders Default fund and multiple alternatives including specialist options eg ethical and religious investments Telephone and email-based support Face to face support Additional employee benefits available Employee communications by email or provided to employer Face to face employee presentations or clinics (additional fees apply) 4 of 10
Whichever solution you choose, we will help you comply fully with the workplace pensions legislation and give your employees a high quality pension scheme. You can also choose the automated online solution now and work with our consultants at a later date. Employers with existing pension schemes If you currently offer your employees a pension scheme, you might be able to use this for auto enrolment. However, it is not necessarily straightforward. For example, the pension has to meet certain criteria to count as a Qualifying Scheme for auto enrolment; the provider has to allow it to be used for auto enrolment; and the provider must accept all your employees into it. Even if you can use your existing scheme, it might be in your interests to choose an alternative that is better suited to the needs of the employees you will auto enrol. Our consultants can help you establish whether your existing scheme can be used for auto enrolment and whether using it is the right choice for your business and employees. Employers that are close to, or have passed their staging dates If you are close to your staging date you might still be able to use our online automated solution but you will need extra support to do so. If your staging date has already passed, it is essential that you agree a plan with The Pensions Regulator as quickly as possible because they have the power to impose daily fines of up to 500 per day and to order you to pay your employees contributions from your staging date to the date you become compliant. Our consultants can work with you to develop an accelerated project plan, support you to become compliant as quickly as possible and help you deal with The Pensions Regulator if necessary. Employers that have a complex payroll structure If you have a complex payroll structure, you will need extra assistance to help you understand which employees are covered by the workplace pensions legislation and how to get your data ready for auto enrolment. Employers that have complex needs for some other reason If you have complex needs for any reason and would like the support of one of our consultants, we are here to help. Our service starts with an initial consultation to help you understand your needs and any help you may require. Our consultants can help you categorise and assess your employees and create a project plan to get your HR and payroll systems ready for auto enrolment. 5 of 10
Flexibility and choice The workplace pensions legislation offers a wide range of compliance options. Our online automated solution includes the options that our experience has shown to be the most popular with employers and employees, but they might not be right for every employer. If you would like to explore the other options available to you, our consultants can help. We offer a completely modular service based entirely around your needs. You can ask to meet with our consultants at any time as your needs evolve. Our consultants can also help if you are happy with our online solution but would like face-to-face support in order to set up your pension scheme. Alternatively, our helpdesk can assist you with any questions you might have for the cost of a local rate telephone call. Employers that want to change their staging date Your staging date is the date by which you have to comply with the workplace pensions legislation. The legislation allows you to bring your staging date forward if you wish. You might choose to do this to align the staging dates of all the companies within your group, to enable you to comply with the legislation during 2016 to avoid the capacity crunch caused by much greater numbers of companies staging from 2017, or simply because you are ready to start offering your employees a pension scheme before your staging date. If you want to change your staging date, it is important that you follow the correct process. Our consultants can guide you through this process and help you choose an optimal alternative date. Employers that want to use Salary Exchange Salary Exchange enables employees to swap some of their salary for pension contributions. In effect, the employer pays them a reduced salary and, separately, pension contributions. This offers potentially significant income tax and national insurance savings that benefit both the employee and employer. However, it is not right for all employers or all employees and it is important that all the advantages and disadvantages are fully understood. Our consultants can help you assess whether Salary Exchange is right for your business and employees and, if it is, ensure it is successfully implemented. 6 of 10
Employers that want to design their own pension scheme The auto enrolment legislation offers a number of compliance options that treat earned income in different ways and have different minimum contribution levels. It also allows employers to set their own rules as long as they are in excess of the minimum contribution requirements. Employers that select any option other than the basis included within our automated online solution will need to get approval from The Pensions Regulator to ensure their scheme rules are compliant. Employers that do not want to use the options set within our automated online solution The automated online solution includes pre-set rules that cannot be changed. Contributions can be increased above the minimum and employees can choose an alternative to the default fund but no other changes are possible. Our consultants can help you understand the options and choose the right rules for your organisation. Our consultants can help you set your objectives, design your scheme and get it approved. Employers that would like to consider their total reward strategy As organisations grow, total reward becomes an increasingly important recruitment and retention tool. It can make sense to use your staging date as a time to launch not just a new auto enrolment pension, but a whole reward strategy tailored to your business needs. Our consultants can help you review your existing reward strategy against your competitors, identify any possible areas for improvement and find cost effective solutions. They can also help you communicate the benefits of your new reward programme to your employees. Employers that need extra support with communications Some employees will need or want extra help to understand their new pension, beyond the communications we offer as standard. Employees often value drop in clinics and presentations and these can help them feel more positively about the new benefit you are offering. Our consultants can help you set up and run a communications programme tailored to the needs of your employees, to ensure they value the investment you are making in their futures. 7 of 10
Employers that want to offer personal financial reviews to higher earners Employers that need to review their HR risk management Higher earners, especially those with larger pension pots, may need specialist advice about the consequences to them of auto enrolment. Anyone with a protected lifetime allowance can lose the protection if they start paying into an auto enrolment scheme. It is also likely that higher earners will have other pensions and investments and the new pension should be considered as part of a wider investment strategy for these individuals. Smaller employers often have substantial HR risks as the loss or absence of a key individual can be difficult to absorb. As the business becomes more established it is important to look at how these risks are managed and how the business would be affected. Our consultants can help you review your HR risks and put in place a suitable risk management strategy. It is against the law for employers to do anything that could encourage an employee to opt out so it is safest for organisations with employees who are potentially affected by these issues to introduce a third party at an early stage. Our Chartered Financial Planners can offer personal consultations and group advice sessions to higher earners. 8 of 10
How to contact us For more information about our consultancy services, please call our helpdesk on 0345 606 0424. An initial meeting costs just 325 and any further fees will be agreed with you based on the scope of the project you wish to pursue. Phone: 0345 606 0424 between 9am and 5pm (Monday to Friday, excluding Bank Holidays) Email: helpdesk@creativeae.co.uk www.creativeautoenrolment.co.uk 9 of 10
Creative Pension Trust is an occupational pension scheme governed by Pan Governance LLP (company number OC333840) of 3 Castlefield Court, Church Street, Reigate, Surrey, RH2 0AH. The scheme is sponsored by Creative Auto Enrolment (company number 8554978), a subsidiary of Creative Benefit Solutions Limited (company number 6293305), which is authorised and regulated by the Financial Conduct Authority, reference number 473893. Both companies are registered in England and Wales. Their registered office is 125 London Wall, London, EC2Y 5AL Helpdesk phone number: 0345 606 0424 Online: www.creativeautoenrolment.co.uk. Email: helpdesk@creativeae.co.uk CAE/0416/256