Financial Management - OMTF overview

Financial Management - OMTF overview

We’re delighted to offer a financial advisory service to all OMTF members, which will focus on the “auto-enrolment” pension legislation. These changes will affect ALL employers in the UK from this October 2012.

Auto-enrolment: a brief summary
In force from October 2012, this legislation places the onus of pensions firmly onto the employer by making them “auto-enrol” all relevant workers into a qualifying pension scheme.

For many small employers (less than 50 employees) the compulsion to meet this legislation will not happen until the middle of 2015, thereby meaning that we have plenty of time to plan and implement an appropriate strategy to meet the demands of this law. Each employer will have their own “staging date” to when they must first comply.

Apart from the auto-enrolment of employees & workers, there will also be a requirement for both employer and employee to contribute to the scheme. The minimum contributions are 3% employer, 4% employee & 1% by way of tax relief paid directly into the individuals’ pension pot. Again these minimum contribution levels will be “phased in” over the first 3 years after the company’s staging date.

A 9 stage process

We recommend that each employer follows the following process to ensure their compliance:-

  1. Know your staging date
  2. Review current arrangements
  3. Assess your workforce
  4. Consider your options
  5. Agree solution
  6. Review internal processes
  7. Implement changes
  8. Communicate with workforce
  9. Keep records

If you’re wondering: How much will I have to pay? Are my existing arrangements acceptable? How does this affect my freelance and contract workers? What is “auto-enrolment”? Then get in touch!

How we can help? At La Playa Financial Management we understand your organisation; we can help lessen the pain by…

  • Reviewing your existing pension scheme to comply with the new laws
  • Helping you offset the financial impact of these new laws on your organisation through smart approaches such as salary exchange
  • Helping you put a scheme in place, if you don’t have one!

At La Playa Financial Management we’re able to offer advice through the entire solution, as well as providing ongoing information and support. We’re also happy to offer a free, no obligation review of any existing arrangements you may have, and when and how this legislation will affect your organisation.

Contact Henry Metcalf, Financial Services Manager on 01223 200674 or henry.metcalf@laplayawealth.com for more information.

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“Thanks again for your help. La Playa is a great company to deal with, very impressed.”

Michael C, Private Client