Auto-enrolment: time to review your benefit package
The impact of auto-enrolment legislation on small and medium-sized employers will for some create significant cash flow issues in the years ahead.
An indication of just how turbulent some of these changes will be came last week when the Pensions Advisory Service (TPAS) revealed it was receiving an increasing number of calls from SMEs about auto-enrolment.
In light of the upcoming auto-enrolment and default retirement age regulations many schemes will be looking for new ways to reduce costs and transfer risk, and as such provides businesses with a good opportunity to conduct a full benefit package review.
Businesses will soon face the decision of simply complying with the minimum requirements of auto-enrolment - expected to impact smaller employers with less than 200 employees from 2014 - or taking action now to revamp their pension schemes.
New market entrant Grove Pension Solutions is imminently set to launch a consultancy and support service to help firms navigate through these changes. Ken Tymms, corporate pensions manager at Grove Pension Solutions, told AccountingWEB.co.uk: “The reality when I go out to networking groups is I’m still meeting accountants that haven’t got the message, they know something is round the corner, but they’re not quite sure.
“Meawhile, many accountants see it as best practice to highlight cash flow issues for their clients three years ahead of when it’s going to impact and I strongly agree with them. That gives time to properly assess and potentially mitigate the financial impact ”