Adviser template:Suitability report This document is intended as an example guide only, to assist you and is not provided as a recommendation. NOW: Pensions Limited is not responsible for any changes made to this document. AM00059.0517/10

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Contents

1. Introduction2. Overview of auto enrolment3. The Pensions Regulator and potential fines4. Your responsibilities and how automated systems are essential

a. Key pointsb. Prohibited actionsc. Minimum contribution requirements d. Assessment and categorising your workforcee. Employee communications

5. Your options when selecting a pension scheme6. Postponement7. Auto enrolment systems and compliance – “business as usual”8. Our recommended pension provider9. Implementation plan and suggested next steps10. Statement of our fees

1. IntroductionWe met on [date] to discuss how the new workplace pensions legislation and auto enrolment is likely to affect your business. I outlined the major aspects of the legislation and you described to me your general thoughts and attitude towards them.

This report will set out again the main aspects of auto enrolment, how they affect you and your responsibilities in meeting the legislation. I have made recommendations as to which pension provider I believe is likely to be most suitable for your needs, and the most efficient and cost effective way of ensuring you become auto enrolment compliant and remain so.

This report is limited to auto enrolment and setting up a suitable workplace pension scheme; it reflects the information you have given me. If you believe that I have misinterpreted your situation then please contact me straight away.

Our discussion on [date] highlighted some particularly important aspects to you:

1) You wish to provide a scheme that operates low charges for employees and is simple for them to understand

2) It is important that the scheme is low cost for you, the employer, to set up and maintain over the years

3) You do not wish to make proactive decisions about the ongoing running of the pensions scheme; therefore strong independent scheme governance is essential

4) It is more important to you that the chosen pension scheme has a strong default investment option than many funds for employees to choose from

5) You require the pension scheme to be integrated easily with payroll to enable efficient and cost effective delivery of communications and other auto enrolment regulatory requirements

6)

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2. Overview of auto enrolment In October 2012 the government introduced the requirement for employers to enrol their employees into a qualifying pension scheme without employees having to take any action. Known as auto enrolment, this change to workplace pension provision brings with it a vast amount of information that employers need to process in order to comply with their obligations.

3. The Pensions Regulator and finesThere are certain employer duties you must comply with. If you fail to comply with your duties The Pensions Regulator (TPR) may take enforcement action and issue a notice and/or a penalty.

Key Points The responsibility for complying rests with the employer If you don’t comply you will face enforcement action in line with TPR’s risk based approach Enforcement action starts with statutory notices and is followed by penalty notices, which may

result in court action

The Pensions Regulator (TPR) wants to help employers comply with legislation. It is not in the business of wanting to fine employers and stated in its “Employer duties: Our regulatory approach” document published on 20th June 2012:

“We will be firm but fair to non-compliant employers. In cases where you have not understood your duties or been unable to comply, we will work with you to get you compliant. However, if you have chosen to ignore your obligations we will use our powers where necessary to ensure compliance.”

Nevertheless, fines can be severe and the published level of Escalating Penalty Notices for breaches is as follows:

Number of employees Prescribed daily rate (£)1-4 50

5-49 50050-249 2,500

250-499 5,000500+ 10,000

It is worth noting that TPR is using its powers. In the quarter July to September 2017, it issued 5,479 fixed penalty notices (FPN) and 1,433 escalating penalty notices (EPN). TPR is also now taking the additional step of publishing the details of those who have paid their EPNs but remain non-compliant and those who failed to pay their EPN, and as a result have been made subject to a court order.

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4. Your employer responsibilitiesThe auto enrolment regulations require employers to ensure they have the following key points covered:

4a. Key points Pay regular contributions into a qualifying pension scheme Assess and monitor the age and earnings of all staff, and any new staff joining Communicate the correct statutory notices to employees Process any opt in, joining or opt out requests Keep and maintain accurate records Submit the Declaration of Compliance to The Pensions Regulator Re-enrol eligible jobholders that have opted out of the scheme, every three years All of this should become 'business as usual', just like real time PAYE

4b. Prohibited Actions Coerce, encourage or incentivise employees into opting out of the scheme Give investment advice to workers Adopt recruitment policies to make it more likely that employees will opt out of the scheme

The above is not an exhaustive list. Employers should think carefully about auto enrolment legislation before taking actions to ensure they may not inadvertently fall foul of any of the legislation.

4c. Minimum contribution requirementsYou will have to make regular payments into the pension schemes of all staff who you automatically enrol and all those who choose to opt in.

There is a minimum legal level for overall contributions, including the minimum that employers must pay. The government has allowed employers to phase contributions to ease the initial impact as follows:

Date Minimum employer contribution

Minimum total contribution

April 2018 to March 2019 2% 5%From April 2019 onwards 3% 8%

These contribution levels are minimums. Both employers and employees will be able to contribute more should they wish to do so. The contributions are based on band/qualifying earnings.

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4d. Assessing and categorising all employees according to age and earningsThere are three categories into which employees will fall:

Eligible jobholders Non-eligible jobholders Entitled workers

These are employees who are aged from 22 to State Pension age and earn more than £10,000* per annum.

This is the most important category because you as an employer must ensure that they are automatically enrolled.

These are employees who are aged between 16 and 21 or between State Pension Age and 74 and have earnings greater than £10,000 per annum OR Are aged 16 to 75 and earn between £6,032 and £10,000*.

For auto enrolment purposes, they do not need to be enrolled but they have a personal right to opt in. If they do decide to opt in, you as an employer must make a contribution on their behalf.

These are employees who are aged between 16 and 75 and who earn less than £6,032* per annum.

For auto enrolment purposes they have a right to join the scheme but there is no obligation for you as an employer to make a contribution on their behalf.

Categories of staff explained“Entitled Workers” – You will have to provide them with joining rights to a workplace pension however you do not have to make a contribution on their behalf.

“Jobholders” – You will have to provide them with joining rights to a workplace pension and make contributions on their behalf. As noted above non-eligible jobholders have the right to opt-in whereas eligible jobholders must be automatically enrolled.

“Self-employed” – These individuals are not classed as workers. Staff who have no guaranteed hours of work are classed as workers for the purpose of auto enrolment. This is a complicated area, we can offer general guidance but you should seek qualified legal advice in specific areas where necessary.

“Agency workers” – You should note that if you have agency workers, regulation states that: Where they have a contract of employment with the agent, agency workers will be managed, for auto enrolment purposes, by the agent. If they have a contract of employment with the principal (employer), they will be managed, for auto enrolment purposes, by the employer.

As part of the analysis to establish the lowest cost contribution basis for you (above) I established that your workforce for the payroll data submitted was categorised as follows:

Eligible jobholders: xxx Non-eligible jobholders: xxx Entitled workers: xxx

You must ensure that the correct contributions are deducted from each employee’s pay every pay period. This is complex and requires the pension scheme to be integrated with your payroll systems in order to generate a data file that can be used at the end of each payroll period. This file should

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not only allow you to deduct the correct funds from your employees but also to manage new joiners, opt outs, send the correct communications and maintain the required records for TPR.

4e. Employee communications It is in your best interests to ensure that employees are made aware what will happen in the lead up to your staging date or duties start date. I recommend that I work with you to establish a thorough communication plan which will ensure maximum employee understanding and prevent unnecessary confusion and questions to you and your senior staff.

At the time of your staging date / duties start date there are strict statutory communications that you must issue to all your employees within six weeks of your staging date or duties start date. These include:

Postponement notices (if you choose to postpone) Assessment letters Information about how auto enrolled employees can opt out of your scheme

Records of all communications must be kept in case The Pensions Regulator decides to carry out an audit on your auto enrolment processes.

Declaration of Compliance: Once auto enrolment has been completed, you will have a legal requirement to submit information to The Pension Regulator to prove how you have complied with your duties as an employer. This information has to be provided online and you could face enforcement action and incur a fine if you do not provide it. You have five months from staging to complete the declaration and you will have to complete a fresh declaration every three years. I can help you gather the information you will need to comply with these requirements.

5. Your options when selecting a pension schemeYou have three choices:

Any one of the choices above can be used as long as the scheme(s) selected meets minimum auto enrolment qualification criteria. These criteria include:

No barriers to auto enrolment, opting in or re-enrolment of a jobholder No requirement for the employee to make any choices or provide any information

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1.Use an existing scheme (if you have one and it

qualifies)

3.Run more than one scheme for

different categories of employees

2.Setup a new

scheme

The availability of a default investment fund. Employees can be provided with a fund choice if the scheme rules allow it. From April 2015, legislation has been in place requiring that the default fund charges total no more than 0.75% pa.

From discussions with you and your current pension provider we have established that the existing scheme does not meet the minimum criteria for auto enrolment. You must therefore make the necessary changes to it or enrol all existing members into a new scheme. We recommend the new scheme in section 8 of this report.

All workers not currently in your existing pension scheme will need to be auto enrolled into it or a new qualifying scheme. From previous investigations and discussions with you we do not believe it practical for your existing scheme to be made compliant and we recommend setting up a new scheme to accommodate all your employees. Our recommendations are contained within section 8 of this report. You do not have an existing pension scheme for employees so you will need to set one up. Please refer to section 8 of this report for our recommendation as to the most suitable pension provider.

Pensionable salary definitions – the options Existing defined contribution pension schemes, whether occupational or personal pension schemes, will base contributions on percentage rates of pensionable pay. The definition of pensionable pay in the scheme rules is likely to be different to qualifying earnings. Pensionable pay may just include basic pay and not overtime or bonuses and may require contributions to be deducted from the first pound earned, or from a band of earnings different to qualifying earnings.

In recognition of this, employers with schemes of this type are able to self-certify that their scheme meets the minimum requirements. One way of doing this is for employers to certify their scheme with respect to one of the alternative requirements. The alternative requirements comprise three sets as follows:

A total minimum contribution of at least 9% of pensionable pay (at least 4% of which must be the employer’s contribution), or

A total minimum contribution of at least 8% of pensionable pay (at least 3% of which must be the employer’s contribution), provided that pensionable pay constitutes at least 85% of earnings (the ratio of pensionable pay to earnings can be calculated as an average at scheme level), or

A total minimum contribution of at least 7% of earnings (at least 3% of which must be the employer’s contribution) provided that all earnings are pensionable.

The contribution rate for schemes using certification is also being phased in. The rate will depend on which set of certification is being used. The rates for all three sets are set out below.

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Set 2

Set 1

Set 3

Set 1 phasing

Transitional period

Duration Employer minimum contribution

Total minimum contribution

1 April 2018 to March 2019 3% 6%

2 From April 2019 onwards 4% 9%

Set 2 phasing

1 April 2018 to March 2019 2% 5%

2 From April 2019 onwards 3% 8%

Set 3 phasing

Transitional period

Duration Employer minimum contribution

Total minimum contribution

2 April 2018 to March 2019 2% 5%

3 From April 2019 onwards 3% 7%

Which contribution and pensionable salary basis is right for you? You stated to me that your primary concern is to keep overall contribution costs as low as possible within the legal requirements. As part of our service I can analyse your most recent payroll data and carry out an analysis based upon the different definitions of pensionable pay described above. This will enable me to identify with you the likely overall costs of auto enrolment for your business, the current assessment categorisation of your workforce and the best definition of pensionable pay for your scheme to use. A report showing this analysis will be available to you.

6. Postponement I believe that you should use Postponement as it gives you flexibility and the ability to reduce costs both at the outset (your staging date or duties start date) and on an ongoing basis. Postponement allows you to defer auto enrolment for your workers for a period of up to 3 months. Postponement can only be used for a worker on certain dates:

The first day of employment, for any worker starting employment after the duties start date The date a worker meets the criteria to be an eligible jobholder after the duties start date

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We can advise on the best use of postponement for all initial and future enrolled workers taking into account factors such as probation periods and aligning to the start of pay reference periods which may significantly save ongoing administrative burden.

7. Auto enrolment systems and complianceThe Pensions Regulator remarks that auto enrolment should “become business as usual.” To make this happen it will almost certainly require you to automate compliance through integrated systems.

Your payroll system will need to interface with other technology in order to automate most/all of the auto enrolment regulatory processes that you are responsible for. The processes include: Assessing the eligibility of the workforce each pay period Making contributions to the auto enrolment scheme Recording members who may decide to opt out and opt in Issuing correct postponement notices and statutory joining letters to each employee Maintaining the required regulatory records for TPR inspection

It could be that your existing payroll software may already support some of these requirements but you will need to establish its capability very soon and we can help you do this.

To ensure a robust auto enrolment process, a company’s payroll system needs to have an automated exchange of data with the pension system.

It is essential that data is transferred accurately and in a timely manner between payroll software and the pension administration system. Our recommended pension provider has worked with the vast majority of payroll software providers and has the auto enrolment systems and experience to ensure the required data transfer each pay period is achieved.

If your payroll system is not particularly auto enrolment friendly we suggest upgrading it at your earliest convenience. We can advise as to whether this may be necessary.

8. Our recommended pension providerAs <insert your name> is an independent advisory firm, we are able to choose suitable products from the whole of the market. Most of the existing pension providers have some form of auto enrolment offering in place but most of them will be selective about the pension schemes they are willing to accept in terms of minimum average and/or total contributions and workforce turnover/stability.

Some pension providers, typically the large master trusts, like NOW: Pensions, have been set up specifically for auto enrolment and are more likely to accept all employee scenarios. Please note that employers may be subject to credit and other background checks. <insert your name> has completed due diligence on numerous pension providers in the selection process of a suitable provider.

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Based upon your specific requirements and preferences we believe that NOW: Pensions is the most suitable pension provider for you and your employees. Information about NOW: Pensions and our reasons for selecting them are given below.

Auto enrolment solution recommendation – NOW: Pensions

The NOW: Pensions Trust provides a simple online solution for clients to manage the running of their pension.

It meets most client objectives by providing the following key benefits:

The scheme provides a low cost solution for members. There is a fund management charge of 0.3% p.a. plus an administration charge of £1.50 per member, per month.

NOW: Pensions does not exclude staff members due to them having lower incomes or contribution levels.

Members are not asked to make any investment decisions. Instead, the NOW: Pensions Trustee Board shoulders responsibility for the investment strategy that is designed to secure the highest possible return with an acceptable level of risk.

NOW: Pensions has built interfaces with most payroll providers that means they can integrate their systems without the need for lengthy programming exercises. NOW: Pensions will help you comply with the guidance set out by The Pensions Regulator.

NOW: Pensions offers statutory communications and innovative administration systems to ensure a smooth transition into auto enrolment, ensuring compliance now and in the future. It produces management information reports to provide you with the certainty and clarity that your employees are being served in the best possible way. It also holds records and produces reports for submission to The Pensions Regulator when required.

NOW: Pensions offers employee and employer support both during scheme implementation and after the scheme has been set up.

NOW: Pensions will facilitate transfers both in and out of their pension scheme, which may well be of value to employees wishing to consolidate previous pension pots into one low charging one.

The NOW: Pensions scheme offers online access to both employees and employers. <insert your name here> services and fees have been positioned at a very competitive level, due

to the efficient process and nature of our relationship with NOW: Pension

Who is NOW: Pensions? NOW: Pensions came to the UK in October 2011 with a mission to offer something different, providing a workplace pension scheme that is easy to implement, cost effective and ensures optimum outcomes for members.

ATP, NOW: Pensions’ Danish parent company, saw an opportunity to create an innovative, member centric proposition to cater specifically for the needs of auto enrolment. NOW: Pensions was born with a distinct and differentiated proposition and brand identity.

The NOW: Pensions charging structure and processes mean that it is able to accept all members, subject to satisfactory checks on employers and all schemes. The same low charges apply to all

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employees no matter how many, no matter what their salary or how long they are members for – whether that’s two months or twenty years.

Employer chargesNOW: Pensions charges a monthly employer service charge, shown in the table below, that is paid by the employer. This fee covers setting up the pension, full and ongoing help from a dedicated support team and all email employee communications.

No. of employees Discount Monthly employer service charge

Any employer 0 100% £0*

Employers not using a payroll bureau Any number N/A £36.00 + VAT

Employers using a payroll bureau and NOW: Pensions microsite 1 - 4 65% £12.50 + VAT

Employers using a payroll bureau and NOW: Pensions microsite Five or more 44% £20.00 + VAT

*Initial assessment of active members takes 3 full months and therefore the £0 charge only comes into effect after the assessment has been completed. Assessments of active member numbers are performed at the sole discretion of NOW: Pensions.

The discounted price for employers using a payroll bureau reflects the considerable support payroll bureaux provide with auto enrolment administration for NOW: Pensions.

Current ClientsNOW: Pensions continues to grow rapidly. Its current numbers as of April 2018 are:

GovernanceGovernance is an important subject for you and all employers with reference to pensions. Robust governance is both an initial and an ongoing process.

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Circ. 32,000employers

Circ. 1.6mmembers

NOW: Pensions is an independent, multi-employer master trust with one trustee board overseeing the interests of multiple employers and their employees.

The master trust structure enables you and your employees to benefit from independent, governance without the costs that would be associated with establishing and running your own trust-based scheme.

NOW: Pensions prides itself on its governance structure and has a Commercial Board concerned with the day to day running of NOW: Pensions Limited; and a Trustee Board which has a statutory duty to ensure that the scheme is run in the best interests of members at all times.

The NOW: Pensions Board of Trustees oversees decisions on all crucial scheme issues such as charges, investment strategy and administration. It closely monitors the performance of the management team and investment manager taking action to safeguard members’ interests when required.

The NOW: Pensions’ Trustee Board comprises a wide variety of well-known industry figures with extensive expertise in their respective fields.

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Nigel Waterson | Chair and former Shadow Pensions MinisterNigel Waterson was Conservative MP for Eastbourne from 1992 to 2010. He served as Shadow Pensions Minister for seven years. Nigel was also a long-standing Chairman of the All Party Group for Older People. He is currently a Trustee of the International Longevity Centre and is also a member of the Council of the Society of Pension Consultants.

Jocelyn Blackwell | Founder of Dunnett Shaw and Raising Standards in Pensions AdministrationJocelyn has over 30 years’ experience in the pensions industry. In 1987 she founded Dunnett Shaw, a management consultancy that

specialised in advising clients on pension administration processes, systems and outsourcing. The business merged with Higham Group in 2005 to form Higham Dunnett Shaw, which was sold to Capita in 2007. Jocelyn was also the founder of the industry-wide body Raising Standards in Pensions Administration (now PASA) and chaired it for four years. She was the winner of the “First Woman of Finance Award” in 2005. She is currently Non-Executive Director at Inside Pensions, a specialist firm that provides independent scheme secretarial services to trustee boards.

Christopher Daykin | Former Government Actuary and prior Chair of the Institute of ActuariesChristopher Daykin CB, Hon DSc, MA, FIA, FSA, Hon FFA, was the Government Actuary of the UK from April 1989 to September 2007. He qualified as a Fellow of the Institute of Actuaries in 1973. Employed at GAD from 1970 to 2007, he worked for UK and many international clients on pension fund consultancy, population projections, social security, national pension policy, pension reform, risk management and the supervision of insurance companies and pension funds.

Chris is now an independent consultant and has a variety of appointments, including Chairman of Trustees of the Arts Council Retirement Plan and member of the Prudential Assurance Company with profits committee. He was President of the Institute of Actuaries 1994-96 and Chairman of the International Forum of Actuarial Associations (the predecessor of the International Actuarial Association) 1996-97. He is currently Chairman of the European Actuarial Consultative Group, the umbrella organisation for all the actuarial associations in Europe, and Chairman of the Pensions, Benefits and Social Security Section of the International Actuarial Association.

Win Robbins | Former Head of European Fixed Income, Barclays Global InvestorsWin has over 30 years’ experience in the Financial Services industry and holds a number of appointments. She is Non- Executive Director of City Merchants High Yield Trust and a Non-Executive member of the St James’ Place Partnership Investment Committee. She is also a trustee of the Institute of Cancer Research Pension Fund. Prior to this Win held a number of senior roles in the Asset

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Management sector, she was Managing Director and Head of Pan-European Fixed Income at Credit Suisse Asset Management, Managing Director and Head of non-US Fixed Income at Citigroup Asset Management, Managing Director and Head of European Fixed Income at Barclays Global Investors, from which appointment she retired in 2008.

Joanne Segars | former Chief Executive, Pensions and Lifetime Savings AssociationJoanne was the Chief Executive of the Pensions and Lifetime Savings Association (PLSA) from 2006-2017. Joanne was appointed to the Board of the Environment Agency in March 2017 and chairs the Environment Agency Pension Fund (EAPF). In May 2017 she was appointed the first Chair of LGPS Central Ltd.

Dalriada Trustees Dalriada Trustees is an industry-leading independent pension scheme trustee with over 100 staff from a wide range of disciplines serving approximately 100 schemes. They are represented on the Trustee Board by Adrian Kennett who is a Fellow of the Pensions Management Institute with over 24 years of pensions experience. Dalriada performs the role of pension scheme trustee to numerous high profile UK employers and charities, holds the ICAEW AAF 01/06 and AAF 02/07 accreditations, and have offices throughout the UK.

All Trustees undertake regular training to ensure that they demonstrate the knowledge and skills identified by The Pensions Regulator, as is necessary for the good governance of a pension scheme.

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Investment solutionFor auto enrolment, NOW: Pensions believes any investment solution should be as simple as possible. NOW: Pensions research revealed that most pension scheme members typically do not engage with their investments; 98% of auto enrolled members remain in the default fund. That is a good thing. Unfortunately the majority of DC pension members who make their own investment decisions do not review those decisions. Those who do review them will often fall into the ‘buy high/sell low’ trap, resulting in a less favourable financial position than they would have enjoyed had they remained in the default fund.

Worrying about investment decisions detracts from members focusing on the key issues. By offering a single solution, NOW: Pensions concentrates its efforts on growing members’ investments, allowing them to engage with the fundamental questions such as: When do I want to retire? What do I want to do? And how much should I pay?

Diversification NOW: Pensions spreads its investments over a number of different risk classes which they carefully monitor every day. Diversification has two main advantages:Firstly, it is extremely difficult, if not impossible, to invest in one area that will consistently perform well over a number of years. By spreading the investments, there is a better chance of achieving good, steady investment performance over the time until retirement.

Secondly, by spreading the risk there is a better chance of avoiding big sudden drops in the value of employee funds which many pension savers may have experienced in the past. Equally this may mean that there is less chance of benefitting from a sudden gain too.

Growth and protection phases

When it comes to saving for retirement, there are two main phases that need to be considered.

The Growth Phase The Protection Phase

The Growth phase focuses on building the fund while retirement is still a long time away. Then NOW: Pensions slowly moves your employees’ funds into the Protection Phase as they start thinking about their retirement.

1. The Growth PhaseThe Diversified Growth Fund (DGF) is the ‘investment growth generating’ engine for members of the NOW: Pensions Trust. As retirement will be some time away for the majority of members, the DGF has a long-term investment horizon which makes it important for the portfolio to be able to

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1 2

perform well in a broad variety of economic scenarios. This is achieved predominantly through diversifying assets into risk factors which behave differently in different economic environments.

Although, short-term ups and downs are normal, the DGF has an objective to provide steady and secure growth by, balancing the risk of the different investments held by the fund. The Fund separates all investments within the DGF into what are known as Risk Factors. The diversification these provide helps to drive performance as well as providing an element of protection.

The four different risk factors are:

2. The Protection PhaseAs your employees begin their approach to retirement, NOW: Pensions will gradually switch theirinvestments (as well as ongoing contributions) into the Retirement Countdown Fund. While the Diversified Growth Fund is the right investment for long term growth, as retirement gets nearer,it is important to alter the investment strategy. NOW: Pensions do this automatically; they normally start switching employee funds when they reach ten years before retirement.

Retirement Countdown FundIn light of the flexible way members may now access their retirement benefits, NOW: Pensions investment strategy is designed to start protecting the value of the employee’s pension fund, and therefore their choices, as they head towards retirement.

The chart below demonstrates the gradual transition into the Retirement Countdown Fund which invests in areas such as Cash Deposits in order to reduce the overall level of risk within pension fund savings as retirement approaches.

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Glidepath into retirement

Leaving your company’s serviceIf an employee stops working for you, they can:

Leave their fund in the NOW: Pensions plan Transfer their fund to another pension contract with another provider or registered pension

scheme Transfer their fund to their new employer’s pension scheme

No penalties are levied for any of the options selected above.

Tax treatment and lawAll statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and Her Majesty’s Revenue and Customs (HMRC) practice. Levels and bases of tax relief are subject to change.

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Diversified Growth FundReturn Target: Cash +3%

Retirement Countdown FundReturn Target: Cash

9. Implementation plan and suggested next stepsAs we have established, there are various tasks that you will have to carry out and <insert your name here> can help you at each of these stages. These can be summarised as follows:

Establish a project plan identifying key tasks, timelines and personnel Make the application to NOW: Pensions Trust and liaise with them during the set up process Integrate your payroll software with the pension scheme, to ensure accurate exchange of data.

You must engage with your payroll software provider to establish its auto enrolment process capability and share with it the NOW: Pensions data requirements

A workforce assessment will be needed to identify your eligible jobholders and the overall scheme costs - this will be done using your payroll system and our analysis tool

Prepare and carry out an employee communication and awareness program At your staging date or duties start date you will need to issue postponement communications

to staff members After the initial postponement period a final workforce assessment will be needed on the

deferral date to confirm who should be auto enrolled into the scheme Within six weeks of your deferral period (or staging date/duties start date if you decide not to

use postponement) you need to ensure that all eligible employees are enrolled and non-eligible jobholders are given the right to opt in.

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<insert your name here> charge a range of fees for installation and ongoing support depending on employee numbers and the distance of your firm from our headquarters.

The fees were discussed during our initial meeting with you and are separated into initial installment charges and also ongoing support and service charges. The charges are paid by you, the employer, and are expressed in cash terms. In your case we have agreed fees on the following basis:

Initial charges for the work described in this report

= [£2,500]

Ongoing charges = [£175 per month]

The ongoing charges relate to the “Ongoing and potential ad hoc services” within our auto enrolment client agreement which was shown to you at our initial meeting.

I hope that you will wish to engage our services on the basis of this report, the fees stated above and our client agreement. If so please sign a copy of this report in the space below and return it to me.

Signature…………………………………………….. Date…………………………………………………….

Name…………………………………………………….

Position……………………………………………….

Client company……………………………………

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