Auto Enrolment

Question 1

Name the 3 types of employee

Answer 1

Worker
Eligible Jobholder
Non-eligible Jobholder

Question 2

What age group covers workers and jobholders/non-eligible jobholders?

Answer 2

Workers - age 16-74
Non-eligible jobholder - age 16 -21 or SPA -74
Eligible jobholder - 22 and SPA

Question 3

What are qualifying earnings and what does it include?

Answer 3

Gross earnings in the ‘qualifying earnings band’ in any pay reference period.

This includes salary, overtime, bonus, commission and SSP or Mat Pay

Question 4

What are the ER duties at the staging date?

Answer 4

Must enrol eligible jobholders into a qualifying pension scheme within 6 weeks of the AE date but backdated t the start date.

Question 5

Phasing - detail the phasing periods

Answer 5

Phase 1 - Staging until 05/04/18 = 1% ER + 1% EE
Phase 2 - 06/04/18 until 05/04/19 = 2% ER and 3% EE
Phase 3 - 06/04/19 onwards = 3% ER + 5% EE

Question 6

Compliance and fines - detail the penalties applicable for non compliance

Answer 6

£400 fixed penalty PLUS

£50 per day (ER’s with less than 5 workers) to £10k per day fr ER’s with at least 500 workers

Question 7

Short Term Service Refund - explain the circumstances it can be paid from a DB scheme

Answer 7

1. Less than 2 years service
2. Before NPA
3. No transfers have been made into the scheme
4. No previous BCE’s
5. Extinguishes member entitlement

Question 8

Short Term Service Refund - Tax Position

Answer 8

20% on the first £20k and 50% on the remainder

Question 9

Can a short term service refund be paid from an Occ MP Scheme

Answer 9

No - stopped since October 2015