As part of automatic enrolment, employers need to have a qualifying workplace pension scheme in place. However, if you are an employer and have no eligible employees you do not need to set up a scheme. Non-eligible jobholders have the option to opt in to the scheme and entitled workers can choose to join the scheme, therefore it would be advisable to have a scheme in mind.
For an eligible jobholder, the employer and the employee must pay into the chosen scheme to help the employee save for their retirement. Eligible jobholders have the right to opt out of the scheme. Employers will need to find a scheme themselves or consult with an accountant or financial adviser to help them choose the best option.
The Pensions Regulator (TPR) advises employers to research a few different schemes before they make their decision. The following schemes have informed TPR that they are open to the small employer market.
Employers will need to confirm that the pension scheme will accept all their staff, how much it will cost to implement and what the ongoing costs will be to both the employer and the employee. Importantly, you will need to make sure it works with your existing payroll software. BrightPay supports 17 different pension schemes listed below. We also offer direct API integration with both NEST and Smart Pension. This means users can submit their pension files directly from BrightPay to the pension provider, similar to RTI submissions. BrightPay can also accommodate any pension scheme that is not directly supported where users can export a csv file with the required information selected and upload to the pension portal.
Find out more here.