Employers have six weeks from the date an employee meets the criteria to be an Eligible Jobholder to auto enrol them into the workplace pension.
The Government is very keen that workplace pensions are a success and are running an extensive advertising campaign to make employees aware of the new requirements.
Employers will also have to provide certain information to employees at specific times. They will need to decide whether to just tell employees the basic information or use auto enrolment as an opportunity to remind employees of the importance of saving for retirement and encourage them with their retirement planning. As employers will be contributing to employees’ pension, it makes sense to ensure that they appreciate the commitment being made towards their retirement saving.
Employers need to engage with employees in advance of their staging date but not so far in advance that it doesn’t seem relevant. It would be a good idea to let them know that auto enrolment is coming and that plans are being made to auto enrol them. It might also be a factor in employers’ views on pay rises and employees may find this useful to know. Cheviot can help with communications with your employees.
Employers are required to tell employees about the new arrangements within 6 weeks from the date on which the members will be auto enrolled. If some employees are already members of an existing scheme which complies with the workplace pension requirements, employers have two months starting from the date they become subject to the new rules.
If employers choose to postpone there will be additional information to provide. Employers will also need to tailor their communications for each employment category.
If employers are using an existing scheme such as the Cheviot Pension as their workplace pension, they will need to give them details about the scheme even if they have already done so in the past.
Employers must communicate with employees in writing, either by providing a hard copy letter or sending an e-mail to their e-mail address. Employers are not allowed simply to refer employees to a website for information although directing them to a website for further information is permissible.
Cheviot can help to make sure employers give the right information to the right employees at the right time.
We are used to communicating with our members and can provide employers with all the help and support needed. We have letter templates to make writing to employees much easier.
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