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Post Info TOPIC: Auto Enrolment


Senior Member

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Date:
Auto Enrolment


Hi All

Just in the process of Auto Enrolment and hoping for some payroll expertise. 

I have a company who have taken on two employees under Tupe employment rules.  They are required to continue with their current pension scheme which is The Peoples Pension. 

Would I need to auto enrol these employees since they already have policy numbers etc?

Thanks in advance

Valerie

 



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Master Book-keeper

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Hi Val

No you won't but the employer will need to do the compliance with TPR if they are a new employer.  The employer will then need to either set up a scheme with Peoples Pension or another of their choosing, and move the employees over.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

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Posts: 330
Date:

Thanks John

They are a new employer so I've registred them with HMRC for PAYE.

They have no choice of scheme since the Tupe rules state the Peoples pension must be used. Therefore, I've registered as an agent with The Peoples pension to be able to set up a scheme on the employers behalf (reduced fee if I do it rather than employer).

Would there then be an option during the set up process with Peoples pension to input current policy numbers for the employees or would they need to be registered again


Thanks

Valerie

__________________

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



Master Book-keeper

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Posts: 8646
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Hi Valerie
Unless things have changed and Ive missed it, the TUPE rules dont state the outgoing pension scheme is used (indeed I understand that this is actually impossible), only that they must be offered a pension and the the percentage that the outgoing employer promised to pay into the peneions must be honoured by the new employer.

So it doesnt even have to be the People's Pension, unless of course that was wrapped up in the contract when taking on said employees (although that would be odd!).



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Master Book-keeper

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Posts: 3904
Date:

Hi Valerie

I agree with Joanne.  All TUPE requires is that the employee is given the same rights as they had with the previous employer.  As long as the pension scheme they go into covers those rights it doesn't have to be Peoples Pension, although it can be if your client is happy to do so.

I'm not familiar with PP but with Nest they ask the employee if they are already in the scheme when they send out the welcome pack.

I'm sure you're already aware but the contribution rates go up in April from 2% employer to 3% and 3% employee to 5%.

 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

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Posts: 330
Date:

Thanks Joanne and John for your replies.

I think it was part of the negotiations to take on these employees but my clients happy to be with Peoples pensions anyway so I'll perhaps not rock the boat with anything different now.

I'll go through the process and see what happens

Thanks again

Valerie

__________________

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.

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