Auto Enrolment – Your responsibilities as an employer

What your Company MUST do and how.

The BlueSky Pension Scheme (formerly the JIB Pension Scheme) has been operational since 1988 and has effectively serviced the electrical contracting industry with a solution that has been designed and updated for your auto enrolment needs.

As part of the Government proposals for pension provision over the next 5 years all employers must participate in a qualifying workplace pension scheme and automatically enroll all of their eligible employees at the relevant date.

As an employer, are you ready for auto enrolment? 

When do you need to commence pension contributions?

Staging Dates

Commencing in October 2012, any employer with employees being paid by PAYE will be required, by Government legislation, to nominate a ‘qualifying workplace pension scheme’ and ‘auto-enrol’ its employees.

The date at which an employer needs to commence pension contributions has been set by the DWP but may be subject to further change.

Find out your staging date by visiting www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Are you aware of your auto enrolment legislative responsibilities?

With effect from your staging date your employees aged 22 years to State Pension Age earning over £8,105 pa must be automatically enrolled into a qualifying scheme and have the option of opting out.

Opt out employees will need to be re-enrolled every 3 years.

Employer contributions must be at least equal to the following:-

• 1% of band earnings from staging date to September 2017 – (Total 2%)
• 2% of band earnings from October 2017 to September 2018 – (Total 5%)
• 3% of band earnings after October 2018 – (Total 8%)
• Current band earnings are between £5,564 to £42,475 (based on 2012/13 figures)

Do you have a solution for your employees and know what to look for?

There are many different types of pension arrangements for you to choose from, make sure you choose one that suits your needs now and in the future.  You should look for the following.

• Governance -Trust based schemes offer a greater level of monitoring than contract based arrangements

• Investment Options – Consider costs alongside the quality of the investment offering, low cost can mean lower quality

• Flexibility - Does your chosen pension solution allow you to choose variable contribution rates

• Benefits – What benefits are members offered on retirement, transfer or to their beneficiaries on death

• Simplicity and Transparent Costs - Pension benefits are valuable to your employees; make sure you choose one that focuses on maximising the retirement outcome. Good investment strategies look at maximising returns and minimising risk – paying a little more can often lead to gaining much more.

Are you aware of the costs associated with operating a pension scheme

Employer

• Are there any set up and ongoing costs
• Do you have professionals on hand to help
• Do you have instant access to all the documentation you require
• What ongoing support will your HR/Payroll be given

Employee

• What annual charges are deducted
• What is included within these charges
• Do they have to pay to set up their pension
• Do they have professionals on hand to help
• Is the application process simple and are communications clear
• Do they have instant access to up to date membership information

What are the steps you need to take?

Nominate a pension arrangement - The BlueSky Pension Scheme

• Qualifying workplace mastertrust open to any employer in the UK (formerly the JIB Pension Scheme)
• Multi employer scheme since 1988 with assets in excess of £225m
• Flexible - Any contribution rate on any earnings basis (subject to legislative minimum)
• Advanced investment options incorporating Target Date Funds
• Free annuity service
• Simple cost effective solution
• Auto enrolment capability
• Web based employee, employer and advisor tools
• Team of dedicated industry trained professionals
• Cost effective - Low AMC, transparent investment charging and no annuity set up costs
• Support - Professional team on hand to support employers and employees
• Modern - Latest investment strategy, online access to up to date information
• Governance - Trust based Scheme governed by trained Trustees
• Future proof – Constantly reviewed to ensure meets needs of the membership and legislative requirements
• Supported by the ECA, Unite the Union, SELECT, the JIB and SJIB

Communicate with your employees – BlueSky can help

• What is Auto enrolment?
• When will it take effect?
• How much they will need to pay?
• Confirm chosen pension arrangement (BlueSky) and benefits.

Complete BlueSky documentation

• Deed of Participation
• Application Packs for members
• Prepare HR/Payroll for auto enrolment
• Monthly Contribution submission
• Email communications

Register BlueSky with the Pensions Regulator

The team at BlueSky can talk you through all of your employer responsibilities and provide you and your employees with the technical support required.

If you have any enquiries, please contact:-

Paul Bannister (CEO)    : [email protected]

Jessica Rigby (Delivery Manager) : [email protected]

Dudley Smith (Technical Manager) : [email protected]