2. Do you understand the legislation?
Do you know your Auto Enrolment Status?
• Zero legislative obligation?
• Exempt status?
• Pending scheme status?
• Assessment only scheme?
• Fully compliant AE scheme?
Auto Enrolment is not optional!
Auto Enrolment legislation was introduced in the Pension Act of 2011 and is a
legal requirement for all qualifying businesses.
The Pensions Regulator’s records come from PAYE records held by HMRC who
pass them to the Department of Work and Pensions, who pass them to The
Pensions Regulator.
Non-compliance is a criminal offence and will incur financial penalties. The worst
cases of wilful non-compliance attract a custodial sentence. Many of the fines
issued by The Pensions Regulator are for administrative errors and mistakes, but
the fines are substantial and a daily tariff up to £500 per day.
When you reach your staging date you must have established your AE status and
have a compliant solution in place. Don’t worry, that’s where Enrolex can help.
What is Auto Enrolment?
Enrolex highly trained advisers will ensure your
circumstances are assessed correctly and advise
the appropriate solution for you
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3. How do I assess my status?
Because the legislation is so complex,
most professional advisers suggest you
have expert advice to help you with the
assessment of your status under Auto
Enrolment legislation.
This is a free service. The final decision is
made by you, the employer, but must not be
taken lightly. The Pensions Regulator hold all
payroll records and therefore know who in
a business is paid under the PAYE scheme.
Decisions as to contracts of employment fall
also to the employer. If you are a Director
and work in your business i.e. are involved in
more than officer’s duties, meaning annual
board meetings and companies house
compliance, then you may have an implied
contract of employment.
Options:
Sole trader or sole Director with no
letter from TPR:
Zero Legislative Requirement
(no action needed)
Sole trader or individual director
who have received TPR letter:
Exemption Application
Multiple Directors:
Exemption, Pending Scheme Status
Administration or Pension Scheme required
depending on certain criteria – contact us
for more information
Directors with employees:
Pending Scheme Status Administration or
Pension Scheme required depending
on certain criteria – contact us for more
information
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Workload Comparison?
Alternative offerings vs Enrolex solution
Assess your status
Understand eligibility criteria
Understand postponement process and pitfalls
Understand different pension scheme options
Choose earnings basis
Choose contribution level
Choose a scheme and provider
Choose a communications strategy
Apply online and wait 3 weeks for acceptance / refusal
If not accepted find another scheme
If accepted, set up the scheme online
Design a default investment strategy
Create HR Policy and implement
Create assessment templates
Create postponement template
Create opt in opt out template
Nominate your contacts to TPR
Work out what to do when employee leaves
Work out what to do when employee joins
Work out what to do when employee retires
Work out what to do when eligibility changes occur – pay goes above
/ below eligibility level, age changes etc.
Work out what to do when contribution levels change in 2017 and
2018
Work out what to do if you employee wants to pay more
Work out what to do if your employee wants to opt in during post-
ponement
Work out what to do if an entitled worker wants to make a
contribution
Know what to include in pay
Know when to change status of employees online
Explain your system and relevant criteria to your payroll team or
accountants payroll team
Set up AE software within your payroll system to make sure they are
compatible
Enter eligibility status for employees on online – risk of fine
Ensure no coercion of employees
Set up payment system to your chosen pension provider
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You with
guidance
from
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Action - Research, Preparation and Set Up
Alternative
offerings
Enrolex
Who does the work?
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Assess all employees every month
Print out communications every month and send to employees
Advise employees about what’s happening (FCA regulation and
coercion)
Create pension report to send to pension provider
Make monthly contribution payments – but when?
Repeat these stages every pay run
Repeat stages for every category change, leaver, joiner, retiree
etc. every pay run
Complete 7 page declaration on TPR website
Maintain audit trail for TPR inspection
Undertake ongoing governance of the scheme
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Action - Ongoing Tasks
Alternative
offerings
Enrolex
Who does the work?
Which would you
prefer?
32 set up processes
and 9 actions per
payrun or... 2 clicks
to set up and no
ongoing admin!
Enrolex - the
complete Auto
Enrolment Solution
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6. Auto Enrolment, also known as work place
pensions, started affecting businesses with
fewer than 30 employees from mid-2015.
It is being rolled out across the UK until
February 2018. From 2016, there are over
118,000 companies per month who need
to comply with Auto Enrolment, whether
that be by setting up a pension scheme, a
pending scheme or applying for an
exemption from Auto Enrolment duties.
The Pensions Regulator is sending
notification letters well in advance of
staging date to highlight the date when
Auto Enrolment will affect the business.
This new legislation brings many
challenges for business owners:
1. The majority of business owners don’t
know enough about pensions to be
confident about setting up a scheme
or choosing a pension provider
2. Choosing the right supplier is
difficult when the complexity of the
available solutions takes massive
resource to research and compare
3. Although there is a lot of information
available to show business owners
how to set up a scheme (including
500 plus pages of guidance from The
Pension Regulator), most business
owners don’t have the time or
inclination to trawl through the
information to learn how to comply
with the legislation
4. The penalties for non-compliance
are severe. Should you fail to have
a scheme in place by your staging
date you will receive a fine of £400
and then fines of up to £500 per day
depending on the size of the
business. The Pensions Regulator has
already issued a large number of fines
to businesses who have failed to have
a compliant scheme in place on time
The AE Challenge for Business Owners
5. From the assessment of employees to
employee communication, Auto
Enrolment brings a whole host of
on going responsibilities for the
business owner and the risk of
non-compliance is an ongoing
concern. The potential for financial
penalties increases for small
businesses due to the complex nature
of Auto Enrolment and the lack of
resource to manage its
implementation effectively in-house
6. Employee communication can be a
minefield. The timescales allowed for
responses are short and the risk of
being accused of coercion is high
7. The Pensions Regulator assesses the
percentage of employees who opt
out and have a team of investigators
who will be looking at low uptake
8. The cost of the resource being
dedicated to running an Auto
Enrolment compliant pension scheme
is an additional cost to the business,
on top of the actual pension
contributions themselves
9. Auto Enrolment compliant payroll
software is expensive. Our
competitors Fees typically start at
£1000 and often include a substantial
ongoing monthly fee
Enrolex has been
designed to:
• Deal with all of these challenges
on your behalf
• Remove the risk of financial
penalties
• Remove the need for additional
payroll software
• Remove the need for you to
learn about pensions
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7. So, What is Enrolex?
Scheme features include:
• Pension provider is Creative
Pension Trust
• Government minimum contributions
• Added voluntary contributions
allowed by employer and employee
• 3 months postponement as default
• Allows free transfers in
• Allows free transfers out when
employees leave
• HMRC Approved Unbundled Master
Trust
• Independent Trustees - PAN
Governance LLP
• Retirement age 65 but can retire from
age 55
• Investment Managers - Scottish
Widows
• Funds available include the Default
Fund plus 3 other options
• Pre Set features include
qualifying earnings definition of £5824
to £42385
• Low scheme charges are well within
government cap of 0.75%
• Administration and investment
management charge (AMC) 0.4% per
annum Active member fee from 60p
to £2.00 per month
• All charges are deducted from the
members personal retirement account
Our research indicated very clearly that most
business owners want a basic, compliant
Auto Enrolment scheme. Enrolex offers an
effective, fully compliant scheme with the
minimum of effort and input from the
business owner.
Your accountant has analysed the options in
the market and has chosen Enrolex as the
most appropriate Auto Enrolment scheme
for businesses such as yours.
Creating a pre-set scheme is beneficial in
many ways:
• There is no requirement for the
business owner to become a pension
expert or make any decisions
• The set up process is far quicker and
therefore cheaper
• The fewer choices there are to make,
the less potential there is for mistakes
and fines
Compared to a
number of other
providers, this scheme
DOES take transfers
in and also allows
transfers out when
employees leave
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8. Stage 2: Solution Implementation
Your adviser will arrange an online meeting
to set up your scheme or implement one of
the other solutions to ensure compliance
with The Pensions Regulator.
If you need to set up a scheme, they will do
that for you online during your call, it usually
takes less than 10 minutes. You will receive
an email confirmation which you must click
to agree and that’s it!
The system instantly emails you confirmation
that your scheme is set up. You’ll also
receive a complete suite of documents
including HR policies, employer guide and
staff information handouts
At the same time your payroll provider will
receive an email from the Enrolex system
informing them that the scheme is set up
and telling them what they need to do with
regards your payroll.
All solutions require administration and
online compliance with the Pensions
Regulator, but Enrolex advisers do this for
you, which means you have nothing to do to
ensure compliance with The Pensions
Regulator.
Stage 1: Initial Contact, Assessment
and Nominated Contact Service
The majority of our clients are referred to
us by their Accountant, which means that
our first contact with clients is by way of an
introduction.
During our initial conversation we assess
your circumstances in terms of Auto
Enrolment and how it impacts on you and
your business. Our team then show you how
the Enrolex solution works and answer any
questions you may have.
If you haven’t already got your staging date
letter from the regulator we’ll contact them
on your behalf and find out when your
staging date is to ensure we have your
scheme in place well in advance to avoid
any fines. If you have received your letter we
will help you nominate your contact with The
Pensions Regulator. This service is free of
charge.
We can implement your Auto Enrolment
solution at any time up to 4 months before
your staging date, but would advise you
to do it as soon as possible to avoid the
bottleneck from 2016 where up to 118,000
businesses per month will be trying to set up
their Auto Enrolment schemes.
There is no downside to
setting up early, you won’t
have to make contributions
any earlier, it just means that
you can be fully compliant
and then forget about it.
Enrolex also offer a
prepayment direct debit
system to spread your set up
costs
What do we do at Enrolex?
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9. The Enrolex system will:
1. Assess the workforce to determine
who is to be included in the scheme
2. Contact employees to inform them
about their status and what that
means
3. Employees simply telephone the
Enrolex helpline should they wish to
opt out
Stage 7: Contributions Begin
Your payroll team / payroll provider runs
payroll and uploads the information from the
payroll software to the Enrolex system. This
is a simple process but as always, Enrolex
advisers are there to help if required.
Enrolex then sends a pension report to
Creative Pension Trust who collect
contributions by Direct Debit and invest
them with Scottish Widows. You don’t have
to do anything!
Stage 8: Ongoing Payroll and
Contributions
Every month the payroll runs as normal and
the file is uploaded to our system. Enrolex’s
system analyses the data and notifies the
payroll team / provider of any changes they
need to implement before the next payroll
run. Joiners, leavers, retirees or changes of
category will need to be made on the payroll
system before payroll runs as usual.
Stage 3: Direct Debit and Payroll
Upload
Eight weeks before your staging date you’ll
receive an email prompting you to set up
your direct debit so that contributions can
be collected when they are due. Your adviser
will be available to help you with this step
should you need any support.
Whoever runs your payroll will receive an
email and will need to upload your
employee details from their payroll software
to the system. They’ll receive instructions
on how to do this and we’ll provide support
should they need it.
Our software works with all known UK
software packages without the need for any
costly Auto Enrolment upgrades. Your
adviser will guide you through this process
or work directly with your payroll provider if
they run your payroll.
Stage 4: Your staging date arrives
and Postponement starts
The Enrolex system automatically postpones
all employees for 3 months, sending notices
directly to your employees if we have their
email address, saving you time and money.
During this period your payroll team uploads
your payroll details without contributions to
our system allowing the payroll and
contribution dates to align.
Stage 5: Deferment Date Passes and
Employee Assessment Begins
After the 3 month postponement period
employees must have their first assessment.
The Enrolex system undertakes this initial
assessment and assess employees at every
pay period so you don’t have to. At this
time Enrolex sends assessment notices to
your employees directly if we have their
email addresses. If not, Enrolex will send
you print ready communications so you can
inform your employees about the scheme.
Don’t worry, Enrolex’s helpline handles all
queries from your employees, not you!
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10. 6. Access to free advice and support
Enrolex offers you and your
employees a free advice line
7. A reliable scheme
Creative Pension Trust is an
unbundled master trust, approved
by HMRC. This means you can be
sure that if the funds are
underperforming the trustees have
the right to move the investment,
unlike many offerings in the market
8. Saves time, resource and cost
Enrolex takes away the hours of
research and implementation required
with other Auto Enrolment systems.
Implementation is just two clicks for
the employer, that’s it! Enrolex
advisers guide you all the way
through the process. Enrolex includes
a simple software upload, saving time
and effort in the complex area of
payroll – it is NOT MIDDLEWARE!
1. Ease of implementation
Enrolex is fully automated and
manages the entire process from
start to finish, our advisers help
you from the very beginning and
you don’t need to do anything at all,
we do everything for you.
2. Competitive fees
Enrolex has been specifically
created for small businesses. Our
service is very competitively priced
whilst providing the easiest, most
complete solution in the marketplace
3. No need to purchase additional
payroll software modules
Enrolex works with all known UK
payroll software packages, thus
keeping your payroll costs to a
minimum. If you choose any other
system, your payroll provider will have
to purchase additional AE modules
and pass on those costs to you
4. Removal of financial risk
Enrolex reduces the risk of large
financial penalties for non-compliance
or simple mistakes. We are the only
provider to deal with your Declaration
of Compliance with The Pensions
Regulator
5. Reduced risk of coercion claims from
employees
Because Enrolex immediately
provides the employer with a
complete suite of HR documents,
communicates directly with
employees by email and has an
independent source of advice on
the helpline, the risk of future claims
from employees regarding coercion is
vastly reduced
Enrolex: Benefits to Business Owners
To find out more about
how Enrolex can help you,
your business and your
employees, contact us today
on 0800 802 1291 or email
info@enrolex.co.uk
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11. Q. I’ve already got a pension scheme for
myself / my employees
A. The majority of schemes aren’t Auto
Enrolment compliant, however, it is your
responsibility to check with your scheme
provider, give us a call and we’ll work
through your options if it is not compliant
Q. It’s too far away at the moment, I don’t
want to do it now
A. There are no downsides to doing it now.
• Bear in mind there will be 6000
businesses per day needing to set up
a scheme from 2016, there is no
guarantee that you will be able to set
up in time if you leave it too late
• You may not be accepted by your
chosen scheme, if you have only a few
employees, not many providers will
accept you, which could mean you
miss your staging date and getting a
fine from the regulators. Enrolex take
all businesses regardless of employee
numbers
Q. Can I do it my self and avoid paying a
fee?
A. Admittedly it is possible for a
non-pension expert to do this themselves,
however, please consider the following:
• Do you have time to read all the
necessary guidance to ensure you
set up a compliant scheme?
• Making a mistake can be very costly
and very difficult to rectify
• What else could you be doing
in your business if you weren’t
spending time and money on setting
up a pension scheme?
Q. My employees don’t want to join
A.
Be very careful! You shouldn’t be talking at
all to your employees about this! The next
big PPI type scandal could be my employer
stopped me joining the scheme! Because we
go direct to the employee it means you can’t
be accused of coercion
The other thing to bear in mind is that TPR
have all PAYE records now. If they see less
than 50% of employees opting in, they could
begin an investigation. It makes sense to not
even speak to your staff about it. Use the
Enrolex guidance information - you receive it
the minute you set up your scheme
Q. My business can’t afford this
A. Our fees are the lowest in the market,
and our offering is the most comprehensive.
Your accountant has researched them all so
you can rest easy that we have the best
system and the best price for the service.
We also offer a spread payment plan to
spread the cost of setting up your scheme
FAQs
If you do it now you can
forget about it, we do
everything else for you,
we can even spread your
set up costs by using a
direct debit if that would
make it easier for you
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12. To find out more about how
Enrolex can help you, your
business and your employees,
contact us today on
0800 802 1291
or email
info@enrolex.co.uk
or visit
www.enrolex.co.uk
Enrolex:
Your Complete
Auto Enrolment
Solution
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