Pensions Auto-enrolment: Helping you prepare for 2012 and beyond 

KPMG Pensions has developed a standard approach to help clients plan for and manage the impact of Auto-enrolment.

• Financial Impact – understanding all associated costs, including set-up, ongoing administration and escalating contribution levels (both employer and employee) and the impact these have on your business.
• Current pension plan design – reviewing this to make sure it fits with your short and long term business and HR objectives.
• HR & Payroll systems – capability to meet demands of both initial implementation and ongoing compliance.
• Communication – rolling auto-enrolment out to your employees will require a robust communication plan to ensure compliance and employee understanding.
• Timescales – sufficient time to plan and identify changes required to ensure compliance ahead of the fast approaching deadlines.

• How many of your employees are currently not enrolled in a pension scheme?
• Will your existing pension arrangements satisfy the statutory minimum?
• Should you provide the same scheme and contribution rates to all members, or do you need to have alternative structures/contribution tiers?
• What are your peers/competitors offering?
• What proportion of opt-outs might be expected?
• What ongoing administrative/management burden may this create?
• Are your IT/Payroll/HR systems joined up and ‘fit for purpose’?
• What is the impact on high earners? Should you have an alternative approach?
• How can you mitigate the increase in cost?