Sport Governance Conference

In Partnership with the Legal Panel Framework

Cynhadledd Llywodraethu Chwaraeon

Mewn Partneriaeth â’r Fframwaith Panel Cyfreithiol

LEGAL WORKSHOPS

GWEITHDAI CYFREITHIOL

Pensions / Auto-Enrolment and Contracts

Pensiynau / Cofrestru Awtomatig a Chontractau

Michael Collins (Gateley Solicitors)

Michael Collins

28 October 2013

Pensions, Auto Enrolmentand Contracts

Pensions, Auto Enrolmentand Contracts• Pensions in 2013• State• Private – personal/occupational

• Employer’s obligations

• Contracts of employment

Pensions, Auto Enrolmentand Contracts

Pensions, Auto Enrolmentand Contracts• Auto Enrolment• What is it?• Staging dates: 2012 – 2018

- from 1/11/13 500+ employees- spikes in 2014

• Employer’s obligations• Who needs to be enrolled?• Choice of scheme

Pensions, Auto Enrolmentand Contracts• “workers”

• “jobholders”- workers

- ordinarily work in UK

- at least 16 and under 75

- paid “qualifying earnings” in relevant pay reference period

Pensions, Auto Enrolmentand ContractsQualifying earnings:

• annual earnings between £5,668 and £41,450 (2013/14 tax year)

• “earnings” includes salary, commission, bonus and overtime;

• pro rata calculation for each pay reference period (eg monthly)

Pensions, Auto Enrolmentand ContractsWho needs to be auto-enrolled?• “eligible jobholders” – have to be auto-enrolled:

- earnings exceed earnings trigger (£8,105 in 2013/14)- aged between 22 and SPA

• “non-eligible jobholders” – can join if they want:- earn qualifying earnings but don’t meet above criteria

• “entitled workers” – can join but get no employer contributions:- not a jobholder

Pensions, Auto Enrolmentand ContractsWhen must eligible jobholders be

enrolled?• with effect from date meet criteria if not

already in qualifying scheme• postponement• opt-outs• automatic re-enrolment every three

years

Pensions, Auto Enrolmentand ContractsChoice of scheme:

• existing scheme?

• new scheme? Eg NEST

• combination?

• must meet quality criteria:- defined benefit

- defined contribution

Pensions, Auto Enrolmentand ContractsQuality requirement – defined contribution

Employer contribution Total contribution

Until 30/9/17 1% 2%

1/10/17 to 30/9/18 2% 5%

From 1/10/18 3% 8%

• Based on “qualifying earnings”• Alternatives

Pensions, Auto Enrolmentand ContractsEmployment protection measures

• prohibited recruitment conduct

• inducements

• right not to suffer detriment

Pensions, Auto Enrolmentand ContractsEnforcement:

• Pensions Regulator- compliance notices

- penalties: fixed and escalating

Pensions, Auto Enrolmentand ContractsPreparation• identify your staging date• plan well in advance• assess your workforce• speak to pensions consultants and payroll providers• consider issues for high earners• regulator guidance

Questions