What is pensions auto enrolment?
Since the Workplace Pensions Reform of 2012, new legal duties have been placed on employers to help more people save for their retirement. Employers will need to automatically enrol certain workers into a pension scheme, and both the employer and the worker will make contributions into that scheme.
Each employer has a ‘staging date’ at which they need to auto enrol their workers into a pension scheme. Staging dates vary for different employers and are based on the number of workers they employed in April 2012. Staging dates began in October 2012 with the largest employers and are gradually affecting smaller employers, so that all employers will have auto enrolled their eligible workers by April 2017.
It’s important that you start preparing early, to ensure that you have met all legislative requirements. Employers are free to choose a pension scheme to enrol their qualifying workers into, but they must ensure that it is a qualifying scheme, which means that it needs to meet certain criteria. If you already offer pension arrangements for your workers, you still have new obligations to meet, such as ensuring that your existing pension scheme is a qualifying scheme. For further information, visit The Pensions Regulator’s website, www.tpr.gov.uk.
What is NEST?
NEST (the National Employment Savings Trust) is a qualifying workplace pension scheme that any employer can use to meet their auto enrolment duties. NEST allows employers to provide a workplace pension scheme for workers who may not have had access to one before, and it’s been set up with a public service obligation to accept any employer that applies to use it. For more information visit www.nestpensions.org.uk.
Auto enrolment functionality is already available as standard in Opera 3 Payroll and Opera II Payroll, allowing you to fulfil your auto enrolment obligations.
If you decide to use NEST as your pension provider, NEST Integration from Pegasus is the solution to use with your Opera 3 Payroll or Opera II Payroll. Pegasus NEST Integration allows you to create enrolment information and contribution files which can then be uploaded to the NEST portal.
NEST Enrolment File
This Wizard allows you to easily create a file which contains the details of your employees who are being auto enrolled into a NEST pension scheme. You can also print a report beforehand for auditing purposes. Your ongoing responsibilities as an employer mean that new workers will also need to be auto enrolled into a pension scheme. This Wizard can identify those workers, as well as existing workers that become eligible, such as workers reaching the age of 22.
NEST Contribution File
This simple Wizard will allow you to create a file containing the pension contributions to the NEST pension scheme for both the employer and the employee. This file not only contains the contribution details of all current members, but can also include details of employees that have opted out, stopped paying contributions or left your employment.
You will also be able to hold on to contributions deducted during an employee’s opt-out window, making it easier for you to return deducted contributions to the employee if they choose to opt out.
- Simple and easy to use
- Ensures accurate information is given to NEST
- Simplifies the communication between the employer and NEST
- Enhances the auto enrolment capability of Opera 3 Payroll and Opera II Payroll
- Saves employers a considerable amount of time and reduces costs