Auto Enrolment in 2015

What we will cover

• What is auto enrolment• Who are Johnson Fleming• Market developments• The regulator gets tough• The solution(s)• Next steps

Quick introduction

Partner with

Introducing Johnson Fleming

Customer service: Excellence comes as standard

Tried, tested & proven…..

• Combined pensions experience of 65 years

• Staged over 75,000 employees

• Completed over 700,000 assessments

• Sent over 126,000 auto-enrolment communications

When do I stage?

If you don't know your PAYE reference, it can be found on a P6/P9 coding notice or on your white payslip booklet P30BC.

If you don't pay your staff through a PAYE scheme, your staging date will be 1 April 2017.

Step 1: Enter your PAYE reference:

• Tip: An example of a PAYE reference is 913 / WZ5121A. In this example you'd enter '913' and 'WZ5121A'.Take care not to confuse numbers with letters; zero and the letter 'O' look very similar!

Step 2: Enter the words/digits displayed below and then select 'Show my staging date'

32 new employer responsibilities

1. Employer duties and defining the workforce

2. Getting ready3. Assessing the workforce

• Postponement• Transitional period for DB and

hybrid• Having completed the assessment

4. Pension schemes

5. Automatic enrolment process6. Opting in, joining and contractual

enrolment7. Opting out8. Safeguarding individuals9. Keeping records10. Information to workers11. 11. Automatic re-enrolment

Guidance

52separate guidance notes

Over 70 items to address before, at and after your staging date

On the Openwork adviser hub

Obligation – Who to enrol

Obligations – how much to contribute

Obligation – assessing the workforce

Month 1 Month 4Month 3Month 2 Month 5 Month 6

£WAGES

Basic Basic Basic Basic Basic Basic

£833

Obligation – assessing the workforce

Month 1 Month 4Month 3Month 2 Month 5 Month 6

£WAGES

Basic Basic Basic Basic Basic Basic

Obligation- enroll employees into a qualifying scheme

What about NEST?

• Does not fulfill employers obligations

• Charges

• Restrictions

• Investment

• Flexibility

• Government financed not endorsed

Qualifying Workplace Pension Scheme

Why are we doing this?

Meet Average Joe

He is 35 and intends to retire at 65

Earning national average earnings

£25,000 (assumes salary uplift 1.5%)

Due to auto-enrolment

Joe’s & his employer will contribute

£59,821.64Assumes 8% contributions for 30 years

…and with a bit of growth (3.5%)

£102,567

…and Joe works with 20 others

£2,000,000 +

You are not alone

2012 –2014/15

43,538

2015/16

152,900

2016/17

617,000

2017/18

533,00

The next 12 months

April - June October -

December

January – March 16

15,000

110,000

2016/17

617,000

The scale in perspective

1960-20142015 alone

The impact on your business

Administration

Distribution

Processes

Staffing

Infrastructure

The Pensions Regulator is flexing its muscles…

2437 investigations

58% contained breaches

A change of approach … you have been warned!

The Pensions Regulator is flexing its muscles…

£400 statutory notice……..

Now issued escalating fines from £50 - £10,000 PER DAY!

The cost of getting it wrong

£1,000’sAnd that’s without fines ……

Over 70 items to address before, at and after your staging date

The burden

TIME CAPABILITY RISK

What is your key driver?

Solution.‘become your clients lifeline’

Managed auto-enrolment service

What’s included:

• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Update payroll & provider• Register• Audit and record keeping

Supported auto-enrolment service

What’s included:

• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Partial record keeping• Audit

Initial set up

£1,075

Ongoing administrationMAESFrom £195+ vat per month

SAESFrom £ 2.00 + vatPer member per month

Not all are created equal…….

My accountant will do it for me

Auto enrolment

deliveryTechnology drivers Advisory drivers

…but as long as its qualifying

Remember Joe

£59,821.64

Not every scheme is the same…..if you haven’t asked

Its not just for large funds

35%

Contribution options

Contributions for net salary

Contributions via salary sacrifice

Contributions from gross pay

Tax relief: non tax payer

£ 960 £960

20% Tax added automatically

(£6,720)

How can one size fits all be the right answer?

History has a habit of repeating itself

Pensions have long been judged by this process…and you are making a pension decision

www.pensionlawyer4u.com

3

If its not written down….

• What research was conducted?

• What options were considered?

• Which were discounted and why?

If its not written down….

• How the scheme fits the needs of the employer and workforce?

• Gives you all the info they need

• Allows you to sign up to each service

• Updated frequently

www.johnsonfleming.com/openwork-client

The user experience

• This pdf is on the right hand side of the client facing site

When should I start?

• No need to wait till staging!

• Secure the resource

• Spread the cost

Don’t delay - Speak to your adviser today

Staff pressure

In time, enough people who pay into the pensions (the staff) will start asking some questions about where their money is going.

Financial impact

Decisions will come under scrutiny including those who influenced them…

…and those who seek to empower employees to obtain restitution abound.

2

Questions?

Ladies and gentleman thank you for listening

THIS DOCUMENT IS CONFIDENTIAL and intended solely for the use of the individual to whom it is addressed or any other recipient expressly authorised by Johnson Fleming Limited, in writing or otherwise, to receive the same. If you are not the addressee or authorised recipient of this document, any disclosure, reproduction, copying, distribution, or other dissemination or use of this communication is strictly prohibited. Past performance is not a guide to the future. Potential for profit is accompanied by the possibility of loss. The value of investment funds and the income from them may go down as well as up and investors may not get back the original amount invested. The content of this presentation is for information purposes, it does not represent personal financial advice and is not recommendation that contributions to the Group Personal Pension Plan will meet all of your future financial requirements for retirement.  If you have any doubts as to whether the content of this presentation meets your personal needs you should seek independent financial advice. Johnson Fleming has joined alliances with specialist business associates who are able to provide personal advice, at your request. These carefully selected business partners reserve the right to charge a fee for these services which would be agreed in advance before they undertake any work on your behalf. Johnson Fleming Group Limited is authorised as a Firm of Financial Advisers and our permitted business activity is advising and arranging life insurance, pensions, investments and general insurance contracts. Johnson Fleming Group Limited is authorised and regulated by the Financial Conduct Authority (FCA Register number 599255, see http://www.fca.org.uk/register for registration details) and registered in England and Wales No 06272390.

Johnson Fleming Limited (FCA 215110), Johnson Fleming Administration Services Limited (FCA 480883) and Johnson Fleming Services Limited (FCA 606750)  are Appointed Representatives of Johnson Fleming Group Limited. Registered Office:  Johnson Fleming Group Limited, Fleming House, Bromsgrove Enterprise Park, Bromsgrove  B60 3AL. JFXXXXXX

Important information