Plan early for auto enrolment to avoid unnecessary costs, CIPD urges
The Chartered Institute of Personnel and Development (CIPD) is urging SMEs to plan ahead for auto enrolment to ensure they get access to the systems and advice they need, while avoiding unnecessary costs.
In a recent report published by CIPD, Pensions auto enrolment – the lessons for SMEs, the following key lesson which has been learnt by larger companies was highlighted:
“The one message that comes through time and time again is: start to plan this as early as possible - each employer will have its own unique challenges depending on its structure – we advocate starting 18 months ahead.”
To date over 1,100 employers have begun complying with auto enrolment, but over the coming years this number is set to rapidly increase. Between April and July 2014 a total of some 30,000 employers will have their staging dates, meaning that access to advice and software will be harder to come by.
The summary of key lessons which emerged from the CIPD report include:
- Start planning early
- Know your staging date
- Choose and agree scheme and software providers at least six months before your staging date
- Test processes and software – make sure everything works
- Ensure effective communication
- Use The Pensions Regulator’s website
Automatic enrolment is the biggest change to pensions in decades. Knowing what you need to do to get your business ready can be difficult and stressful.
That's why IRIS is offering FREE Automatic Enrolment Year End Health Checks to help you take stock of the changes and what your business needs to do to get ready.