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Employee Benefits News

Latest News
02 Jun 2014

Businesses Completely In The Dark About Auto-Enrolment

The introduction of auto-enrolment is the biggest shake-up of pension policies that UK employers have had to deal with in decades and most companies have no idea how to cope with the issue, says a recent study by Creative Auto Enrolment.

Furthermore, only 15% of businesses that will be staging auto-enrolment within the next year feel they can handle the preparations alone. Meanwhile, 54% of businesses struggle with things like determining a staging date for auto-enrolment. More so, 27% admit they can´t do this without outside advice, while 11% didn´t even realise they had to do it; 15% say they have no idea what a staging date is. Another 66% are concerned with choosing the right pension providers and plans for their employees.

Also, the high fines for failure to comply with auto-enrolment, £2,500 per day, have forced businesses to seek advice elsewhere. Out of those surveyed, 26% have consulted or plan to consult their payroll provider, while 23% admit that the lack of external support is an obstacle.

However, businesses are in the dark about what providers can do for them as well. Out of the 33 tasks that employers must complete to comply with auto-enrolment legislation, payroll companies can help only with 12. The other 21 are left for clients to deal with. And 40% of clients admit they have no idea what the tasks are.

Businesses have been missing their staging dates simply because they thought their provider will sort everything out for them, Creative Auto Enrolment managing director David White said. According to him, employers are still in the process of learning lessons from the 18 months since businesses first began to stage. In his view, this is something employers should not have to do alone.

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