Immediate Actions for Employers – Preparation is Important, andCommunication is Key!!

Did you know, you must provide a pension even if you employ just one person?

What will you have to do for Auto Enrolment?

• Manage Payroll – remit contributions to the National Automatic Enrolment Retirement Savings Authority (NAERSA)

• Pay Employer contributions – match member contributions up to an eventual maximum of 6% (members earnings capped at €80,000)

• Communicate with employees

What can you do to get ready for Auto Enrolment?

• Assess the workforce

• Decide on your pension offerings for employees

• Make a budget

• Engage with payroll providers

• Get professional advice

What about your existing pension scheme and its potential challenges?

• Existing staff – their membership is voluntary

• Waiting periods apply for the probationary period

• New joiners – (i.e. compulsory to join and no waiting period)

• Employee pension offering – Hybrid v’s Streamlined

What can you do now?

• Check eligibility for existing pension schemes – keep it the same or alter with the provider?Find the best home for the higher rate taxpayers

• Potentially set up a new category for new joiners in the existing scheme and make a change in contracts if appropriate

• Educate non-members of existing schemes as to what suits them best

Different approaches for 20% and 40% taxpayers

• Employer contribution of 1.625% and employee 1.875%

• For 20% taxpayers, offsets the slightly higher Government top up of 25%

• There will be an unseen cost of the ongoing company resources needed to administer the scheme – employees joining, leaving, contribution changes etc.