A large number of organisations will not be required to introduce auto-enrolment provisions until February 2014 at the earliest, yet the level of discussion surrounding the pensions reform has seemingly risen in recent months.
Interesting articles in the November issue of Pay and Benefits Magazine highlighted the increased number of questions that companies are being asked by their employees, following the high profile advertising campaign featuring business moguls Karren Brady and Theo Paphitis.
It is good news that individuals are showing a real interest in the developments. Hopefully it will mean they carefully consider whether or not they opt out of auto-enrolment, which may go some way to the Government achieving its goal of a further 11 million people saving for retirement by 2018.
It may also encourage organisations to think about auto-enrolment now, rather than waiting until their staging dates draw closer. This is especially important in view of another Pay and Benefits article which reported that approximately one third of companies set to introduce auto-enrolment in the first half of 2013 have still not made all of their strategic decisions.
Selecting the pensions provider of choice is of course one significant task that needs to be tackled, and is something that should not be rushed. But there is the danger that many businesses are underestimating how potentially difficult it will be to set up and manage the complex auto-enrolment process.
Now is the time to speak to the experts and prepare for the numerous changes. Communication channels between HR, payroll, management and the wider workforce also need to be established. These channels should be robust and sustainable, especially because employee eligibility will change on an ongoing basis.
Organisations should not fear auto-enrolment. It is an important development designed to help people sustain a better quality of life when no longer taking a salary. Advice should be sought though from trusted partners that can help guide you through to your staging date and beyond.
At Cascade for instance, we understand the magnitude of the changes and the fact that any technological functionality must be faultless to ensure clients’ legislative compliance. We have therefore appointed a product lifecycle manager to provide specialist support and insight into how Cascade can relieve the administrative complexity and burden of auto-enrolment.
For more information about how Cascade will act as a much needed helping hand when it comes to effectively managing auto-enrolment, call 0113 255 4115 or email us at firstname.lastname@example.org.