Pensions - auto enrolment

Can anyone help with this?

I do the accounts for a small pre school with 8 employees. I know that none of them will want to pay into a pension scheme. Have I read the information correctly on auto enrolment that I have to go to all the trouble of setting up a pension scheme, enrol the appropriate staff into it, wait for them to opt out and then re enrol them every 3 years and then opt them out again?

That surely can't be right? Has anyone even thought this through? Is there an easy way of setting up a pension scheme that doesn't involve hours spent talking to financial advisors? I don't need the advice because I know that none of the staff want to go into the pension.

Thanks in advance

Comments

  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    As I understand it, yes. It's stupid but yes.

    However, you can just sign up for a NEST scheme which I think takes all the hassle of choosing a scheme away.

    But yeah, I don't know if there is a way of not getting a scheme if no-one wants it. I'm sure if you word the documentation right you could get away with it.
  • Ventra
    Ventra Registered Posts: 14 Regular contributor ⭐ ? ⭐
    First of all, you do not need NEST or an alternative for a number of years based on only 8 staff.

    What you do need, is to offer the staff the opportunity to join a scheme. A Stakeholder is good.

    This can be from any of the providers, effectively you designate "Scottish Widows" for example as the scheme administrators, you inform the staff that the can join the designated scheme if they wish.

    You may be fined upto £50,000!

    See this link

    http://www.pensionsadvisoryservice.org.uk/personal-and-stakeholder-pensions/stakeholder-pension-schemes/employer-access

    Could an hour with a Financial Adviser be worth the time??

    Hope this helps

    Bill
  • coojee
    coojee Registered Posts: 794
    Ventra wrote: »
    First of all, you do not need NEST or an alternative for a number of years based on only 8 staff.

    What you do need, is to offer the staff the opportunity to join a scheme. A Stakeholder is good.

    This can be from any of the providers, effectively you designate "Scottish Widows" for example as the scheme administrators, you inform the staff that the can join the designated scheme if they wish.

    You may be fined upto £50,000!

    See this link

    http://www.pensionsadvisoryservice.org.uk/personal-and-stakeholder-pensions/stakeholder-pension-schemes/employer-access

    Could an hour with a Financial Adviser be worth the time??

    Hope this helps

    Bill

    I already know that I don't have to do it until January 2016. I just wanted to know whether I'd read the rules correctly in that I have to put them in the scheme and then wait for them to opt out. If that really is what the rules say then clearly I'll be doing it. I wasn't saying I wouldn't do it, I was asking if that was really what I had to do. We're already covered for the current rules as we have offered all the staff the chance to go into a pension scheme and they've all declined. The auto enrolment thing is different though.
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