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 providerâ€™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.