In recent months, the majority of auto enrolment headlines have focused on smaller employers who are preparing to meet their staging dates – but what about those employers who have already staged and their considerations for this year?
For some employers, they will now be realising that preparing and getting to their staging date was the easy part. With further legislative changes to workplace pensions pending, the challenge to remain on top of the workload and keeping informed has never been greater.
This month, the government is introducing a 0.75% charge cap on auto enrolment default funds and in April 2016, there will be a ban on auto enrolment legacy consultancy charging and commissions payable to pension scheme advisers.
The unintended consequence of the charge cap will result in heightened pressure on pension providers’ ability to administer schemes at a profit, which in turn will herald the introduction of monthly employer fees; an outgoing which employers may not have anticipated.
By Jonathan Craig, workplace pensions and auto enrolment specialist and head of corporate services at Acumen Financial Planning