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dwyl / hq

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https://github.com/dwyl/hq/issues
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Pension Scheme - 01 January 2018 #342

Open ghost opened 7 years ago

ghost commented 7 years ago

EDITED to include actual tasks:

Original issue:

Our staging date is 1 Jan 2018, so this becomes a legal requirement then

Xero Sync: https://www.pensionsync.com/

NEST http://www.nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html The People's Pension https://thepeoplespension.co.uk/

Legal and General http://www.legalandgeneral.com/workplacebenefits/employers/workplace-pension/ (L&G only allow scheme set up up to 1 month after the staging date) NOW https://www.nowpensions.com/what-we-offer/workplace-pensions/for-employers/ Smart Pensions https://www.autoenrolment.co.uk/ Aviva https://www.aviva.co.uk/business/workplace-pensions/

Consultant = Husky Finance https://huskyfinance.com/

screen shot 2017-11-02 at 15 45 07

http://www.thepensionsregulator.gov.uk/en/employers/duties-checker/outcomes/i-am-an-employer-who-has-to-provide-a-pension/work-out-who-you-need-to-put-into-a-pension-scheme?xtor=EPR-81-[Portrait_2016]-20160317-[CoreEJHwhoToPutinScheme]

http://www.thepensionsregulator.gov.uk/en/employers/duties-checker/outcomes/i-am-an-employer-who-has-to-provide-a-pension/declare-your-compliance?xtor=EPR-81-[Portrait_2016]-20160317-[CoreEJHdeclaration]

iteles commented 7 years ago

Why is this a priority-2 issue?

ghost commented 7 years ago

@iteles was conducting quick initial research as it popped up on payroll - doesn't need to be fully actioned until end of the year

iteles commented 7 years ago

Moving to p4 in line with #349

iteles commented 6 years ago

We'll be postponing this for 3 months to allow us to write up all of the information for dwylers in a way that will enable informed decision making. http://ukpensionsautoenrolment.co.uk/survival-guide/postponement/

A letter will go out to explain this.

rub1e commented 6 years ago

Pensions - it's time to adult

Pensions are fun! (And sensible)

Let's just assume you want to plan for the future and start your pension. Good for you, that's smart.

The way this works is that you put some of your salary into a pot, and your kind employer dwyl matches it (up to 1% of your annual salary).

Your pension pot is managed by dwyl's pension provider, who invest your money for you until you're old enough to retire and buy an annuity (or whatever you choose).

In return for managing your money, the pension provider charges a fee, usually in the form of a percentage of your whole pension pot, a percentage of your monthly contributions, a flat monthly fee, or a combination of these.

PLEASE DO NOT JUST READ THIS SHORT SUMMARY - IT'S NO SUBSTITUTE FOR ACTUALLY READING AND LEARNING ABOUT PENSIONS PROPERLY. THIS IS YOUR FUTURE!

INVESTMENTS CAN FALL IN VALUE AS WELL AS RISE: IT'S YOUR RESPONSIBILITY TO UNDERSTAND THE RISKS

Options

dwyl needs to choose a provider now and has identified two main contenders for your consideration (outlined below, along with a few that were rejected).

In addition to being good value for dwylers financially :money_mouth_face:, key considerations were ease of use (for you and for dwyl) and flexibility (can you tailor how the provider invests on your behalf, more/less risk, ethical investments etc.).

(Not to mention obvious hygiene factors like having an accessible call centre or usable website.)

The People's Pension (TPP)

(Try not to be swayed by the name alone!)

TPP's parent company is a well-established non-profit and many companies small & large use them as a pension provider. They integrate well with dwyl's accounting system. dwyl would pay a small one-off setup fee of £500.

Nest

Nest is the government workplace pension provider (National Employment Savings Trust), so very many companies use them. They also integrate well with dwyl's accounting system. No setup fee.

Rejected

Notes

Difference in fees

TPP and Nest take different approaches, with different results. I only want to make this note because Nest's 1.8% contribution fee looks like a bigger deal than it really is.

Let's say you make £24k in Year 1. You and dwyl put 1% into the pot - that's £480.

:boom: :boom: :boom:

No brainer, right? A tenner vs a bus ticket? But now let's say it's the future and you're earning £75k and your pension pot has fared well and grown to £100k! You and dwyl put in 1%, so that's £1,500

Not so easy now, is it!

The point of the above exercise was just to illustrate the importance of understanding this stuff yourselves. Because, and I can't stress this enough,

THIS IS NOT FINANCIAL ADVICE, DO YOUR OWN DUE DILIGENCE BEFORE EXPRESSING A VIEW

Glide path

The glide path creates an asset allocation that becomes more conservative (i.e., includes more fixed-income assets and fewer equities) the closer a fund gets to the target date.

Or, in English, the provider will automatically start moving your pension pot into more secure, less risky investments as you near retirement age. You don't need to micro-manage your pension if you don't want to.

In conclusion

Read it, digest it, think about it, ask about it. If you don't have questions about how pensions work, you probably haven't looked into it enough. For example, you'll notice I haven't mentioned the providers' investment track records. That's because

THIS IS NOT FINANCIAL ADVICE OR A SUBSTITUTE FOR YOUR OWN RESEARCH

iteles commented 6 years ago

We will need to check that this piece of info is clear on the letter templates we get from TPP: http://www.thepensionsregulator.gov.uk/doc-library/increases-in-minimum-contributions-automatic-enrolment.aspx

screen shot 2018-02-21 at 17 05 58

dwylers must be set up automatically on TPP and then if they decide to opt out, must create their own account on TPP to opt-out by 31-Mar-2018.

rub1e commented 6 years ago

UPDATE: following extensive research, consideration, and debate, @iteles has decided that the best provider for dwyl's needs (despite being the only provider with a hefty £500 signup fee which the founders are kindly shouldering 🙌 💞 ), and - more importantly - for dwylers' needs, is The People's Pension 🎆

We're halfway through the setup process with TPP, and we expect letters to go out this week or next week with all the details for employees. Watch this space... 👁

iteles commented 6 years ago

Letters for this went out earlier this week to @naazy, @SimonLab, @Cleop and @Danwhy.

@rub1e, over to you to finish the enrolment once #415 is complete 👍

rub1e commented 6 years ago

We're signed up withe TPP and I've connected the Xero payroll system as well.

I'm waiting for a couple of queries to be answered, but the next step is for me to upload all dwyl employees' particulars, and then distribute login details so people can access their accounts on the TPP website.

@iteles and I will also have a chat with our bookkeeper and check that everything looks like it was set up properly (w/c 12/3)

rub1e commented 6 years ago

All employee data has now been submitted - so with any luck employees will receive a communication from TPP tomorrow (21/3). (I'll be checking in to make sure)

iteles commented 6 years ago

Emails now also sent out confirming that opt-out is only available after the first pay run (April) and anyone who opts out will receive a refund for the first month.

rub1e commented 6 years ago

Update - final two tasks (documentation and processing refunds from opt-outs) can't be completed until the opt-outs have requested their refunds and we've had confirmation from TPP about a separate query regarding Xero/TPP integration

rub1e commented 6 years ago

Update - Xero and TPP aren't integrating at all. As usual, each party is blaming the other's systems.

I've done everything I can to make sure the details on each system are correct - the problem is on one/both of their ends, but neither is taking responsibility.

To make matters worse, we owe TPP a bunch of money but we can't settle up until the systems are talking to each other. They won't chase us until the payment is 90 days overdue (September), but still this is hardly ideal.

So #474 can't be completed until all this is sorted

rub1e commented 6 years ago

Update - Xero have confirmed that the problem is on the TPP side, and I've sent TPP the instructions that Xero sent me.

I'm waiting for this to be complete before I finish the last two tasks on this list

rub1e commented 5 years ago

Just been chased for pensions data per https://github.com/dwyl/hq/issues/474#issuecomment-422417005 (will write process up when I've figured it out!) and it jogged my memory - @iteles did you or @nelsonic ever log in to The People's Pension to claim your refund?

iteles commented 5 years ago

Ah, no, I'll add it to my list!

rub1e commented 5 years ago

Bump @iteles!

I've added this to the top of your project - it's not urgent, just needs to be done so I can reconcile wages as part of #461

iteles commented 5 years ago

As you saw yesterday: image

I've sent them a support request, let's see!

iteles commented 5 years ago

@rub1e As we discussed, the reply I eventually got was:

Our records show you opted out of the pension scheme on 31st May 2018 and a refund of your contributions was issued to your employer on 1st July 2018.

Please check for the refund and take the necessary steps 👍