openworks presentation
TRANSCRIPT
What we will cover
• Quick recap on auto enrolment
• The size of the market
• The regulator gets tough
• Too much trouble?
• The solution(s)
• How do I get involved
32 new employer responsibilities
1. Employer duties and defining the workforce
2. Getting ready
3. Assessing the workforce• Postponement• Transitional period for DB and
hybrid• Having completed the assessment
4. Pension schemes
5. Automatic enrolment process
6. Opting in, joining and contractual enrolment
7. Opting out
8. Safeguarding individuals
9. Keeping records
10. Information to workers
11. 11. Automatic re-enrolment
Pension schemes: Q1 – Existing scheme in place?
Qualifying
• Charges• Default fund• Barriers to entry
Accept AE population
• Will provider change terms to become qualifying• Different workforce profile
Q2 – what about NEST?
• Does not fulfill employers obligations
• Charges
• Restrictions
• Investment
• Flexibility
Myth: My pension provider will fully support me
60% not checked pension provision and how this would be affected
40% of employers using NEST were rejected by their current provider
80% + of employers needing to stage don’t have a pension scheme
What size employer?
If you don't know your PAYE reference, it can be found on a P6/P9 coding notice or on your white payslip booklet P30BC.
If you don't pay your staff through a PAYE scheme, your staging date will be 1 April 2017.
Step 1: Enter your PAYE reference:
• Tip: An example of a PAYE reference is 913 / WZ5121A. In this example you'd enter '913' and 'WZ5121A'.Take care not to confuse numbers with letters; zero and the letter 'O' look very similar!
Step 2: Enter the words/digits displayed below and then select 'Show my staging date'
The next 12 months
April - June July -
September
October - December
January – March 16
20,000
8,000
15,000
110,000
Buying zone
A business opportunity?
The latest NEST insight survey of SME’s 74% of those questioned stated they “would be looking for advice”.
100,000+ employers looking for your help!
Flexing its muscles
£400 statutory notice……..
Now issued escalating fines from £50 - £10,000 PER DAY!
Managed auto-enrolment service
What’s included:
• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Update payroll & provider• Register• Audit and record keeping
Supported auto-enrolment service
What’s included:
• Project management• Data validation• Assessment & categorisation• Communications• Opt out & in• Partial record keeping• Audit
What does it cost for your client?
Ongoing administration
MAESFrom £195 per month
SAESFrom £ 0.25 per member per month
Initial
set up
£1,075
Johnson Fleming Managed AE service
Typical client
£800 in year 1
£463 p.a. thereafter for lifetime of contract
* Assumes set up fee plus consultancy on scheme selection, monthly payroll and
single staging date.
Optional fees
• Source a qualifying scheme £625
• Assess existing scheme for suitability £625
• Advice on salary sacrifice
£625
• Advice on certification option £690
• Advice on staging date harmonisation £625
With a target audience over 1,200,000
£30,000 to solve a problem for 10 business owners (who are looking for
help) and make them a client for life with someone else doing the hard work.
No compliance, no administration or ongoing service requirements
A new income source:
Advisory services
Pre enrolment £500
• Employer obligations• Staging date• Multiple staging dates • Assess existing pension
scheme(s)• Establish a new qualifying
arrangement • Assess workforce and
provide cost analysis • Auto enrolment checklist
• Group presentations• Pension surgery• Transfers• Governance• Wealth management• Funding options
• AE structure for your business
• PAYE & Payroll groups• The use of
postponement• Communication
options• The right pension
scheme• Use of salary sacrifice• Your certification basis• Payroll data, • mapping and uploading
Assisting in setting up £500 On going service - £750 p.a.
Your adviser hub
• Gives you all the material in PDF format that you need as an adviser
• Contact information for the JF helpline if you have any questions
• Updated frequently
www.johnsonfleming.com/openwork
Client facing site
• Gives your client all the info they need
• Allows them to sign up to each service
• Updated frequently
www.johnsonfleming.com/openwork-client
We are here to help
• Seminars & workshops
• Conference calls with clients
• Marketing support for AE
01527 571303
Quick recap – the facts
• 153,000 employers stage in 2015/16
• More pension schemes will be set up in this year alone than in the past 65
combined
• 1,100,000 between 2016 7 2017
• Most will leave it till last 3 months
• 74% stated they will seek advice
• 80% of accountants are looking for an auto enrolment solution
• 84% of employers approaching staging don’t have a pension scheme
Quick recap - Best time to engage?
• No need to wait till staging!
• Secure the resource
• Spread the cost
Quick recap – the opportunity
• Clients who are business owners or influencers?• Do you have so many clients you don’t need any more?• Do you have consultants looking for leads?• Perfect opportunity to solve a problem for a business owner
who HAS to obtain a solution• Many accountants still need a solution – great for referrals• Set up now then farm the client bank for years to come
20% introducer fee paid on all fees invoiced
Quick recap – getting started
ADVISER SITE
www.johnsonfleming.com/openwork
• All the info you need as an adviser
• All the info your client needs
• Lets them activate each service
• See all fees and additional services
CLIENT SITE
www.johnsonfleming.com/openwork-client
• All the info your client needs
• Lets them activate each service
• See all fees and additional services available
Important information
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The content of this presentation is for information purposes, it does not represent personal financial advice and is not recommendation that contributions to the Group Personal Pension Plan will meet all of your future financial requirements for retirement.
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