Pension schemes may offer you extra services, such as working out who needs to be put into a pension scheme, processing requests to join the scheme or helping with your ongoing duties. You should consider whether you need these services.
You should also consider:
Payroll software
If you use payroll software you should ask the payroll provider whether it’ll work with the pension scheme you’d like to use. You should also check that the software can carry out all the automatic enrolment tasks. Find out more and check your payroll process is set up for automatic enrolment.
Writing to your staff
You have to write to your staff individually to explain how automatic enrolment applies to them, including how tax relief works. Some pension schemes may offer to do this for you. If the scheme doesn’t do this, we have letter templates which you can use. Or your payroll provider may offer this service.
If English isn't the first language of all your staff, you may want to check whether the scheme can provide communications in other languages.
Communications from the scheme provider
It’s important that the scheme you choose regularly sends communications to you and your staff.
Check that the scheme's communications clearly explain:
- how much money a member of staff has saved
- how their money is being invested and how the investments have performed
- what their projected savings will be when they retire
- how much of the money they pay into their pension will be taken in charges
- whether they can achieve the retirement they want at the current rate of saving
- whether they qualify for tax relief on what they pay into the scheme and if they have to do anything to claim it
Investment options
Any scheme that you use for automatic enrolment must have a 'default investment arrangement'. This is what your staff's money will be put into, unless they choose their own investments. Charges paid out of member savings in default investment arrangements must be no higher than 0.75% a year of the member's fund.
You may also need to consider whether the scheme offers investment options that suit the particular needs of your staff, such as ethical funds or funds that comply with Sharia law.