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Are you ready for Pension Auto-Enrolment?

Welcome to the Advanced Business Solution Auto-Enrolment resource website.  This website provides general information about the auto-enrolment changes coming into force from October 2012, to help answer your queries and prepare for the changes.

Read about Pension Auto-Enrolment

 
  • A guideline to your new pension costs
    Stage 1 of 5 - About You

    For a guideline of the potential new costs of Auto-Enrolment
    to your company, enter your details in the calculator:

     
  •  
    Stage 2 of 5 - About Your Company
    Number of employees who are active members of existing pension scheme
    Employee average gross earnings £*
    (per annum)
    % of employees who will be auto-enrolled that you anticipate will opt-out
    Assumptions
    • These calculations assume the employer will make the minimum pension contribution
    • Calculations are based on the average earnings, so any expected pay rises should be accounted for in your inputted earnings figures 
    • It has been assumed that all employees not currently an active member of a qualifying pension scheme will be auto-enrolled i.e. that they will be an eligible jobholder
    • Pension costs have been calculated based on full gross earnings*
    *if pension contributions are to be calculated based only on earnings above the lower threshold, then reduce the average gross earnings entered by the annual lower threshold value (£5,564 for 2012/13)
  •  
    Stage 3 of 5 - Results Summary
    Auto-Enrolment calculations for
    Staging Date
    Starting Employer Contribution
    New Auto-enrolment employer pension
    contribution costs per annum
     
  •  
    Stage 4 of 5 - Admin Cost of Auto-Enrolment
    Approximate costs of administering Auto-Enrolment per annum

    Based on the number of employees in auto-enrolment at , we estimate that to administer auto-enrolment manually will take up to hours and could cost you up to £ every year.

    This rate is based on an assumption of up to 2.5 hours per employee per year for assessments, questions, communications and resolution of any issues, using the average hourly rate of a Pension clerk (Source. Thisismoney.co.uk, Table of UK Salaries 2011).

     
  •  
    Stage 5 of 5 - Considerations
    • The number of employees in your pension auto-enrolment scheme is likely to increase if you have a growing organisation
    • The number of employees opting out of auto-enrolment is likely to decrease over time (the Pensions Minister Steve Webb estimates that one third of employees will opt out initially)
    • In your average gross earnings figures, you may wish to account for pay rises in the given time period
    • If you have automated processes in place you can significantly reduce administration time, e.g.
      • Letter generation and storage in the payroll system
      • An integrated HR & Payroll system
      • Use of a robust budgeting & forecasting model
     

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