Step 4. Choosing Your Pension Provider

There are a number of pension providers who provide qualifying auto enrolment pension schemes. In order to qualify as an AE scheme, it must meet specific criteria relating to contribution amounts and how the scheme is run. However, while there are a number of schemes available, some of them are only accepting companies with a minimum number of employees or contribution amounts, or may simply not be suitable for your business.

There are a number of options available to you when choosing your pension scheme – for further information on how to choose your pension provider click here

Creating your pension account online with your chosen provider

Once you have chosen your pension scheme, you will need to register your company online with them. This will involve entering your company details, contacts, method of payment etc. However, do be careful regarding when you enter your employee details. With NEST for example, as soon as they are entered, NEST assumes your scheme is live and will start expecting contribution reports and payments.

Download provider’s AE employee information and give it to staff

Pension providers usually have a wealth of information that you can provide to employees to explain what auto enrolment is and how it works. A lot of the information is aimed at encouraging people to stay in the scheme and not opt out. Please note that this is NOT the same as the statutory notices you have to provide your employees as part of the legal obligations of auto enrolment.

Create your Pension Scheme in your payroll system

As part of AE, you need to specify the details of your chosen pension scheme in your payroll. If you have more than one scheme, they all need to be entered. At a later stage, you will need to assign the actual employees to the scheme they are going to be enrolled in.

When you have all of your scheme details together you can fill in a bit more of your Declaration of Compliance – doing this as you go will save a lot of hassle in the end.

Once you have decided which pension provider to use, you will need to think about communicating with your staff. This is a key obligation in AE and is dealt with in the next step – STEP 5. STAFF COMMUNICATION AND NOTICES

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Benchmark Software

For over 30 years, Benchmark has been writing Accounting, Payroll, Customer Relationship Management (CRM) and other business software that makes it easier for your business to succeed. From our first accounts package in 1979 to our latest environmental and sustainability software, we provide a wide range of flexible, robust and intuitive programs that work the way you do to help you do business. Better. Looking for business software? Get in touch and let's talk about how we can help you.

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