Professional Documents
Culture Documents
Who we are
In partnership
Contents
Background & Challenges
Company Proposition
Overview of Legislation
Legal Requirements
Next Steps
OR
Auto-Enrolment overview
Commenced October 2012 Automatic Enrolment from staging date
Eligibility criteria
Contribution criteria
Compliance of regulations
Penalties
Eligible jobholders
22 - SPA 16 21 or SPA 74 16 74
10,000+
Non-eligible jobholders
10,000+ Have a right to opt in Above 5,772 but below 10,000 Up to 5,772 Have a right to join
Entitled workers
16 - 74
Matt can you change this to look like the other slides (see previous)
Certification
Tier 1 2 3
Total Contribution 9% 8% 7%
Min employer % 4% 3% 3%
Employee % 5% 5% 4%
Range of clients from small employers to PLCs and across all sectors
Phased Contributions
Employer contribution of 3% after 4 years
Personal minimum contribution of 4% after 4 yrs Contributions phased in over 4 year period Up to to 30 Sept 2017 Employer 1% Personal 1% 1 Oct 2017 to 30 Sept 2018 -Employer 2.5% Personal 2.5% From 1 Oct 2018 Employer 3% Personal 4% Contributions based on ALL pay
Example: Employee earning Services 20,000 per annum - initial 1% contribution provided
Monthly payments example
Employer pays 16.67
Tax Relief *Basic rate on tax your relief contributions at source Higher rate tax claimed through self assessment or via coding
13.33*
Total paid in
33.34
Risk v Return
Investment Options
Stage 1: 15 years or more to go Going for growth Stage 2: 15-5 years to go Gradual risk reduction Stage 3: last 5 years Maximising tax-free cash + pension
Financial education
Member engagement
Employee
Online management
Access to advice
Leaving Service
Longevity Build a retirement fund (replacement for earnings) Employer contributions Tax Relief Control and Independence
Term of saving period Amount of contributions Employer Contributions Investment Choice Plan charges Personal Contributions Tax Relief
Choices at Retirement
Retirement Fund
Purchase an annuity
(open market option)
Alternatives
Phased Income Drawdown Third Way
Joint Life, 50% spouse, level no guarantee - 5,250 p.a. gross Joint Life, 50% spouse, RPI 3% p.a. no guarantee - 3,379 p.a. gross
Projection of Benefits
Joining Process
Current members
Contractually joined or Auto - Enrolled Joiner notification issued Including opt out Policy issued Log in details for online services Consolidation options
Non members
Auto Enrolled or Express an interest in joining
Joiner notification issued Including opt out Policy issued
Summary
You need to provide for your retirement A pension is a tax efficient way of saving After Adoption will contribute towards your plan Low charges and access to a wide range of funds
Important Notes
Please note, this presentation has been prepared based on our current understanding of UK taxation, Law and HMRC Practice. The tax treatment of arrangements varies according to the financial circumstances of the individual concerned. Past performance is not necessarily a guide to the future returns and values can go down as well as up. Lucas Fettes & Partners (Financial Services) Limited is an Independent Financial Adviser authorised and regulated by the Financial Conduct Authority FCA no. 146279.