Auto-enrolment: A guide for members on factors to consider when selecting or advising on a suitable workplace pension scheme
Whilst the Pensions Regulator (‘TPR’) has set out a wide range of practical issues which must be considered by employers when selecting an appropriate workplace pension scheme, there is no formal guidance as to the amount of due diligence required.
This has caused uncertainty amongst members as to the breadth and depth of consideration which they must be able to demonstrate when advising on or assisting clients with scheme selection, when deciding which schemes to offer as part of their payroll services or when selecting a scheme for their own workforce. As a result, there is concern amongst members about the potential for future recourse in instances where they are subsequently deemed to have given insufficient consideration to relevant factors when selecting or advising on, or assisting clients with scheme selection.
The purpose of this helpsheet is to assist members by setting out ICAEW's view on the factors which we would expect our members to consider when assessing whether a scheme is appropriate, covering:
- governance and sustainability
- compatibility with payroll software
- costs and charges
- tax relief
- generating letters for staff.
Issued: May 2016
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