Pensions & Auto Enrolment
Setting up a qualifying pension scheme is only the first step. We regularly see unintentional breaches that can harm members and land employers with fines. Its important that you review your scheme and ensure that it continues to delivery good outcomes to members.
Auto Enrolment pitfalls
- Payroll setup errors – There’s more than one way to apply tax relief and contributions; are you using the right method?
- Incorrect pensionable salary calculations – Is your configuration accurate?
- Missing eligible staff – Are you capturing employees who reach the age or earnings threshold after your initial setup?
- Overlooking ongoing duties – Your online declaration is done, but have you completed your annual certificate of compliance?
- Outdated statutory letters – Is your new-hire pension letter current and issued within the legal timescales?
- Forgetting re-enrolment – Do you know when your next re-enrolment date is?
- Weak record-keeping – Would your records stand up to scrutiny from The Pensions Regulator?
Where we can help
Provide Annual Pension Scheme Governance
Review your Default Fund
Review your existing pension scheme and benchmark this against alternative pension providers, switch to a new provider where required
Set up a new pension scheme
Set Up Salary Exchange
Employee Financial Education
Employees can often struggle to understand some aspects of financial issues that relate to them and often fail to understand the various benefits on offer in the workplace. Group pension presentations are a great way to provide your staff with more information on their pension. One to One meetings can also be effective for staff to understand more about their own circumstances, with individual projections, cashflow modelling and answering any personal questions about retirement planning.
Salary Exchange
Did you know you can save money on National Insurance (NI) contributions for both your company and your employees by switching your pension scheme to a Salary Exchange.
Key Benefits for Employers
- Reduce Employer National Insurance (NI): By reducing your employees’ salaries through salary exchange, you lower your employer NI contributions.
- Cost Savings: The savings on employer NI can be significant, helping to reduce your overall business expenses, these savings can either be used to increase the employee contributions if you choose not to benefit directly from the switch, or can be used for ongoing pension governance and financial education for your staff, through initiatives such as presentations and one-to-one meetings.
- Attract and Retain Talent: Offering a salary exchange pension scheme can be an attractive benefit to current and potential employees, improving employee retention.
Key Benefits for Employees
- Higher Pension Contributions: The employee can use the saving in National Insurance to Increase their pension contributions.
- National Insurance Savings: Employees pay less National Insurance, increasing their take-home pay.
- Tax Advantages: Employees benefit from tax relief on their pension contributions, boosting their retirement savings.
The example below highlights how much National Insurance can be saved by introducing salary exchange, The savings are per annum.
| number of pension scheme members | 50 | 100 | 500 |
| Total yearly salary payment before exchange | £1,500,000 | £3,000,000 | £15,000,000 |
| Total salary exchanged by employees (5%) | £75,000 | £150,000 | £750,000 |
| Employer NIC rate (2025/26) | x 15% | ||
| Employers annual NIC saving* | £11,250 | £22,500 | £112,500 |
*Figures are based on an average salary of £30,000 per employee, each exchanging 5% of their salary for a pension contribution. Employer yearly savings are the NI contributions that would be paid without salary exchange in place.