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Guide to automatic enrolment

Published by FTAdviser | Jul 19, 2012

Automatic enrolment presents advisers with an opportunity to assist both employers and their employees.

But to make sure both employers and employees get the best deal it is vital that advisers understand what the automatic enrolment requirements are, what are the pension options and who could be better off opting out.

FTAdviser’s Guide to automatic enrolment tackles what is Nest, who must be offered an occupational pension schemes and pros and cons of such schemes.

Answers supplied by Graham Vidler, director of communications and engagement at Nest, Andrew Towner, director of employee benefits at Cartlidge Morland, and Steve Wood, a senior consultant for Helm Godfrey.

  1. Q: What are the options for employers?

    Employers have the option to postpone automatic enrolment for eligible employees by up to three months.

  2. Q: What are the pros and cons of auto-enrolment?

    It is impossible to state the benefits or otherwise without proper assessment, according to experts.

  3. Q: Who are eligible employees?

    All employees must be assessed for automatic enrolment – including temporary, contract and even casual workers.

  4. Q: What are the staged introduction dates?

    Automatic enrolment will not be introduced in a single wave, but in phases.

  5. Q: What are the minimum contribution levels?

    This depends on whether or not an employer wishes to use certification.

  6. Q: What role is there for financial advisers?

    Over the next few years employers in the UK will need to get to grips with their employer duties.

  7. Q: What advice can I give eligible employees?

    You should obtain as much information as possible from the employer, regarding the workplace arrangement.

  8. Q: What advice can I give employers?

    Employers want to take suitable, professional financial advice regarding the implementation of auto-enrolment.

  9. Q: How long will it take to get employers ready for AE?

    That depends on the size and complexity of the organisation, according to Graham Vidler, director of communications and engagement at Nest.

  10. Q: Can my client transfer into Nest?

    Transfers into Nest are not allowed, except in specific circumstances such as pension sharing on divorce.

  11. Q: Can employers offer several pension schemes?

    Several pension options can be offered.

  12. Q: Can employees have several pension schemes?

    Employees can have several occupational pension schemes.

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