To get your scheme up and running, you’ll need to navigate a number of tasks that are both are complex and time consuming. There’s lots for you think about and real dangers for your business if things go wrong.
To give you an idea of what lies ahead, we’ve set out some of the key check points you’ll need to pass along the way. We’ve outlined some of the potential obstacles that could derail your journey.
1. Scheme Design
To make sure you start on the right track, you’ll need to put in some important groundwork, such as
- Capturing the right information about your workforce.
- Comparing any existing scheme against the new requirements and identifying the changes needed.
- Making a decision on your contribution structure.
- Deciding Whether you’re going to use salary sacrifice/exchange.
- Choosing an appropriate default investment.
- Selecting a system to run your scheme.
2. Scheme Set up
You’ll want to implement your scheme as efficiently as possible, and make sure it causes the least disruption to your existing processes. This will involve:-
- Creating a project plan to outline the work that has to be done and the timescales for delivery.
- Identifying exactly who needs to be Involved from your business, Such as your IT, HR and payroll teams.
- Identifying and understanding your pay reference periods.
- Understanding how and when you assess your workforce.
- Defining how workers will join your scheme.
- Deciding if you’re going to use postponement, and if you are, for how long.
3. Worker assessment
To understand the legal responsibilities you’ll have for your workforce. You’ll need to:
- Identify the types of worker you have.
- Assess your workforce in the early stages and then on an on-going basis.
- Fully understand what your legal duties are for the different types of worker you have.
You have legal responsibilities to tell your workers what’s happening, why it’s happening, and what it means for them. You will need to:-
- Understand exactly what different worker types need to be told and the timescales involved (including any workers not being enrolled).
- Define and agree your communications strategy.
- Produce your worker communications.
- Deliver your worker communications within prescribed timescales.
Once you’ve started enrolling workers, you’ll need to carry out regular tasks to keep things running smoothly. This will involve:-
- Certifying and registering your scheme.
- Adding new workers.
- Processing opt outs.
- Managing opt ins.
- Monitoring your workforce for changes in worker type.
- Processing contributions within prescribed timescales.
- Re-enrolling eligible workers who have opted out every three years.
- Holding and maintaining accurate records.