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Our latest Blogs about Auto-Enrolment


Pension Scheme Record Keeping

There’s one important aspect to consider once your pension scheme is all up and running, and it’s something that I don’t think many people are aware of – it’s not interesting, but it’s record keeping. 

 

 


By law, an employer must keep specific records about their pension scheme and also about how their staff have been affected by auto-enrolment each pay period.

 


In terms of the pension scheme records, you need to keep a record of the pension provider’s name and address, their pension registration number and your employer scheme reference number.  It’s also a really good idea to make a note of how you’ve designed your scheme on the same document – so your tax relief basis, your postponement policy, the employee and employer contribution rates (both now and in the future) and the pensionable salary you’ve selected.  Chances are, this time next year you’ll have forgotten what you’ve set up and you’ll have nothing to refer to.  If you change payroll providers, for example, they will need to know all of this detail.   

 

And then in terms of record keeping for your staff, you need to ask your payroll administrator to produce a comprehensive auto-enrolment report as part of your standard monthly or weekly payroll reports.  This report should cover key data, such as the assessment date for each employee, the postponement end date, the employees enrolment date or opt in date, and an opt out date if they’ve opted out of the scheme.  Then there’s the pensionable salary used to calculate the contributions, the contribution rates, the amounts deducted from employees’ pay, and the contribution due from the employer.



 

You need to keep these reports, by law, for a minimum of 6 years, so do keep them safe.  I think record keeping is crucial in case a former employee questions why they didn’t have a pension scheme with you, or they question their contributions – you can look at these reports and establish that the employee wasn’t eligible, or they were enrolled and opted out on a specific date.

 


We cover all of these record keeping requirements for you as part of our pension and payroll service.  So if you need any help in designing and setting up your workplace pension, or you’d like to outsource your payroll to us, please give us a call. We’re aiming to be live on Facebook every Friday morning at 11am so if you’ve got any questions please post them in the comments section.  Please like our facebook page and follow us on twitter.




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