If you’ve been paying attention to the news you’ll know that it’s the turn of the small business sector to comply with ‘Automatic Enrolment’ – the law introduced by the Government in 2012 that requires every employer to automatically enrol workers into a workplace pension scheme if they:
- are aged between 22 and State Pension age
- earn more than £10,000 a year
- work in the UK
For many small businesses, complying with this new law is not a straight-forward matter.
This is why Chiddingstone-based business man Ken Tymms decided to set up Kent Pension Services after spending 4 years working at The Pensions Regulator, the UK regulator of work-based pension schemes.
“Although automatic enrolment is being imposed on businesses, it does not mean it’s a bad idea.” he says. “Employers can either do the minimum to comply with the law, or they can in fact embrace this opportunity and show their staff that they take their welfare seriously.”
Ken works with both employers and advisers (accountants, financial advisers and payroll bureaux) using his expert knowledge in this area to look at the best options available for a business and either assist with implementation or take on the role of Pensions Manager for a small business.
Saving for retirement is more important than ever before and automatic enrolment is a response to real issues:
- We are living longer.
- The ratio of working people to pensioners is expected to reduced therefore placing an increasing burden on future generations of working people.
- Membership of workplace pension schemes was at an all time low prior to the introduction of automatic enrolment.
You need to decide if you want to do the least you possibly can and at the lowest possible cost to comply with legislation; or embrace the opportunity and put in place a quality pension scheme for your staff to help them plan for their futures.
For business advisers
Due to the specialist nature of automatic enrolment, adding it to your list of services may not be the best solution. You will want to be sure though, if you decide to partner with a specialist firm, that your propositions don’t clash in other areas.
At Kent Pension Services automatic enrolment is ALL they do and they can help your clients choose and manage a pension scheme, train and supply software and work alongside you behind the scenes, removing the worry of any conflict of interests.
Don’t put your head in the sand when it comes to automatic enrolment as there are penalties for doing so; Swindon Town F.C. ignored the issue which resulted in them paying a hefty fine of £22,900.
If you would like to find out more about the services offered at Kent Pension Services you can contact Ken on 01892 871 242 or email firstname.lastname@example.org
Featured in: Issue 68 – July/August 2016