September 2016 Some Common Auto-Enrolment Questions

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What is Auto-Enrolment? Does it apply to my business?

Auto-Enrolment is a government initiative to encourage more people to save for retirement through a work pension scheme. Unlike in the past when businesses might not offer a workplace pension, or workers didn’t join, Auto-Enrolment requires employers with at least one employee to set up a scheme, and for all eligible staff to be joined up unless they specifically choose not to.

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What’s the rush? Can’t I just delay things forever?

The law requires each employer with at least one employee to establish a scheme by a certain date, known as its “Staging Date”. You, or your advisor, may have received a letter telling you when yours is, but if you missed it, you can find it out once you register through the Husky free Short List Tool. You can delay assessing and enrolling staff for up to 3 months after the deadline, say if you have temporary workers who will leave prior to that, or a new joiner with a probationary period, but that’s it.

The regulator recommends 6 – 9 months to get everything ready. It’s possible also that pension providers become so overwhelmed with applicants that they temporarily limit new or delay applications, so to get the widest choice of schemes, its best to get moving as soon as possible

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Why don’t I just do it all myself?

There is a long list of things to be done, both to set up a Workplace Pension properly in the first place, and going forward. You’d need to prepare all the information and assess your workforce now & in the future. You’ll need to decide and deduct the right contributions, and of course sift through all the schemes on the market to choose a good one. Then there’s liaising between your payroll and chosen pension provider, communicating correctly with your workers, and handling new staff or those not wanting to join. And you need to make sure the regulator is properly informed, keep records, and re-enrol in 3 years. Frankly it’s exhausting, but if you can do all that, great! If not, the Husky service provides incredible value.

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What happens if I don’t do anything? Who’s responsible?

Ultimately, it’s the employer’s responsibility to set up the Workplace Pension, even if you normally outsource administration to a payroll provider or accountant. Failure to do things can lead to fines and legal problems, let alone unhappy staff who expect you to get things right!

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Who do I have to enrol?

You’ll ultimately have to enrol any of your workers who earn the equivalent of at least £10,000 per annum, is aged 22 or over and under the state retirement age, and who isn’t in any other pension scheme of your business. But even workers outside this can choose to sign up. Our free tool can help you begin to work all these things out.

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Do I have to provide the same pension to all my staff?

It is perfectly possible to have more than one pension scheme for your business, potentially with more than one provider. Perhaps you have distinct sets of workers with different requirements. Or you need to provide several investment choices for contributions to be put into. Providing flexibility might seem good, but not if the administration becomes too much of a headache. Husky though can handle these sort of things and talk you through what’s involved

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What do you mean by a “good” pension?

It might seem a vague word to use, but the panel of experts that we asked to look at all the schemes on the market felt that a good one should show at least three things: it must be viable in having enough assets to survive long-term on thin profit margins, transparent in the way that it sets charges and manages money, and well-run by knowledgeable, experienced and honest people. That might not be the only things, but it is the bare minimum

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Why not just go with NEST, or my payroll suggestion?

While tempting when you ‘re faced with what seems a daunting task, simply accepting the government sponsored NEST scheme, or the one suggested by your payroll provider, might not give the best result for your staff. Often going with the most obvious and easy route comes from not having enough information to consider something different, or confidence that your systems won’t have to be altered. Husky can change that: help you to really make the best choice first time knowing that the process will be smooth

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What makes Husky different?

At Husky, we’re aiming to do three things for workplace pensions. Firstly, we want to be on the side of the mass-market user, not the provider of the product. So we try to simplify, demystify and decode things into language that everyone can understand. Secondly, we want to provide an end-to-end service that stretches from helping you to choose a good pension that fits your business, through setting it up, all the way to ensuring it runs in a smooth, intelligent way. And finally, we want to do this at a scale and price to suit even the smallest employer

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Will Husky choose the pension scheme for me?

No. We at Husky think that if you have the right tools and information, plus confidence that you’re supported when setting up & running the scheme, a small employer can and should make this important decision for their business. You’ll actually find it easier than you think!

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Why do I need someone like Husky?

Husky will help you choose, set-up and run a good Workplace Pension, and we’re there from start to finish. We’ll help you do the planning and make an informed decision. We’ll provide the link between your payroll and chosen pension provider, and handle all the communication with your staff and the regulator. We’ll look after your records, adjust to future changes in your workforce, and manage re-enrolment when the time comes. Basically, Husky will let you get back to what you do best – running your business

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About Husky Finance Husky Auto Enrolment is a workplace pension service designed specifically for small and micro size employers. The service allows small businesses to compare pension providers based on their specific needs. The service takes care of the ongoing administration required to assess a workforce accurately, calculate contributions, and ensure small business schemes remain compliant at every payroll with the lowest effort possible. https://getstarted.huskyfinance.com/ T. 0800 044 8114 E.sales@huskyfinance.com www.huskyfinance.com

NB: This presentation is not for publication and may not be sent to retail investors. It is for illustrative purposes only and may not be construed as an offer to sell or distribute securities. | Confidential © 2016 Husky Finance. Husky Finance is a trading name of Financial SatNav.