SCS encourages UK organisations to prepare for impact of new pension rules
Payroll specialist SCS has warned that UK enterprises could face significant rising costs if they fail to plan adequately for the introduction of the latest Department of Work and Pensions (DWP) legislation on Workplace pensions.
- (1888PressRelease) March 23, 2012 - Payroll specialist SCS has warned that UK enterprises could face significant rising costs if they fail to plan adequately for the introduction of the DWP's latest legislation on workplace pensions.
From October the Auto-Enrolment scheme will see all eligible workers automatically signed up to their employer's pension scheme. Designed to address a situation where many workers fail to take up valuable pension benefits because they do not make an application to join their employer's scheme, experts are concerned that the implementation of the legislation could ultimately prove expensive if organisations do not take steps to implement strategies that reduce the cost and impact of the rule changes.
"This is a crucial time for organisations affected by the Auto-Enrolment legislation. Organisations that panic and throw themselves into the numerous one-size-fits-all schemes run by pension and payroll providers - and operations that leave it too late to have much choice in the matter - run the risk of presiding over escalating long term costs, based on increased manual intervention," said SCS Managing Director Tim Markham.
"The time for action on this issue is now no matter what size of organisation. Organisations that connect with trusted expert partners, plan their response carefully and implement it in good time will not only retain control of the situation, but also stand to minimise both the costs and the operational impact of the scheme."
Auto enrolment begins for larger organisations in late 2012, after which point these organisations will be compelled to automatically sign all employees, aged 22 and over earning more than £7,475 a year, into to a workplace pension scheme. All organisations with more than 800 employees will have to implement the changes by the end of 2013, with all remaining organisations subject to the legislation, by the end of 2016.
A number of pension providers have entered the market to offer completely outsourced plans for employers struggling to cope with the changes, but such arrangements are widely acknowledged to be the most expensive option.
SCS' conviction that a planned approach to the legislation can deliver multiple benefits is based on its experience helping a range of organisations prepare for its introduction. Unique in that it is in a position to create bespoke payroll solutions for these organisations, the company has the capability to tailor its core tools, taking account of each organisation's unique requirements.
Some of these organisations have chosen to review their Payroll and Human Resources solutions during this period and SCS has been able to assist them in implementing new and innovative solutions.
With over 30 years' experience in HR and Payroll solutions, SCS has helped a range of organisations take away the stress associated with preparing for new legislation. The company serves as a trusted advisor, helping to guide enterprises through the potential minefields while attempting to identify areas for improvement and introducing efficiencies.
Markham added: "You could continue to struggle with the enormous burden placed on your shoulders by the new legislation or you could take this opportunity to try a better way of managing your HR and Payroll solutions. Which way do you want to go?"
"This is a no-brainer: organisations need to review their Human Resources and Payroll operations carefully, assessing exactly how they will be affected by the legislation's introduction and begin planning their strategic response to it as a matter of some urgency. The alternative simply isn't viable."
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