Choosing a pension scheme for your business is a big responsibility, it’s to support your employees’ future after all.
We’ve got 7 top tips to help you prepare your business for workplace pensions:
1. Make sure you qualify for your chosen pension scheme
Some providers apply exclusions to pension schemes so it’s best to be mindful of this when looking for a suitable scheme in case any affect you. Carrying out a workforce assessment can help with this and you can do one for free at www.pensionplaypen.com
2. Understand earning thresholds
Low earners with variable earnings will have different requirements to high earners. If you employ staff who don’t pay tax be mindful of schemes that operate a ‘net pay arrangement’ as you may deprive them of tax relief. High earners on the other hand may need advice and could benefit from a net pay scheme.
3. Consider different ages
<p”>Mature staff may have a number of ‘deferred pensions’ and they may benefit from a scheme where they can bring their pots together. If your staff are mainly young and tech-savvy, look at tech-friendly schemes which offer phone friendly web-services.
4. Take advantage of pension experts
If you have any pension gurus in your business then bring them into the decision making process to offer their opinion – you know they’ll ask questions anyway!
5. Consider offering your staff guidance
Some pension providers will offer their members the option to pay for financial advice from their pension fund (adviser charging). Other providers offer pension training either face to face or through distance learning within the standard price.
6. Check out any special offers
Your or your adviser’s trade association may have special terms with some providers. Examples include the FSB, the ICB and trade bodies for seafarers, charities and social housing organisations. But be careful, not all these deals are as special as they make out!
7. Look into your existing workplace pension(s)
Ask your existing provider if your pension scheme can be used for auto-enrolment and don’t assume it can. Even if it can, it may not be your best bet – shop around before committing. If you choose a new provider, check you can move the old scheme into the new one and whether this can be done without getting every member’s consent.
Looking for a workplace pension can take a lot of time and is a lot to get your head round. To make things easier for you, we’ve teamed with Pension PlayPen – an online service that helps businesses work out the cost of auto enrolment and choose a workplace pension.