Pensions are admittedly not the most exciting topic of conversation, nor are they something that many of us spend our day to day lives worrying about but since automatic enrolment was introduced many more people are now saving for their retirement.
What is automatic enrolment and how does this affect me?
Under the Pensions Act 2008, every employer in the UK must assess, then put certain staff into a pension scheme and contribute a minimum towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and have certain legal duties. Directors who are also the sole employee are exempt from auto enrolment although they may still be able to join a scheme and benefit from saving for their retirement regularly. Work out your duties using The Pensions Regulator website.
This means that no matter what the size of your practice is, you will have auto-enrolment duties to adhere to. Failure to comply will result in sanctions imposed by The Pensions Regulator such as a hefty fine.
When do I need to comply?
New practices setting up must have an auto-enrolment solution in place from the first day they employ someone. Companies already operating and with a scheme in place should continue to assess employees as required and also run a re-enrolment process every three years, where you need to assess and re-enrol employees who had previously opted out.
unit3 design studio is a RIBA Chartered Practice based in Liverpool. They’re made up of three employees and two trainees. Notable projects include a residential development of 16 houses in St Helens and work for an international laundry company in Vietnam, Germany, Spain and Mexico. unit3 signed up to the RIBA Pension in December 2016, six months ahead of their staging date.
We asked unit3 a few questions about their experience using the RIBA Pension.
Why did you choose the RIBA Pension?
We chose the RIBA Pension because of the low fees. We also liked the fact that it would be organised and run through our industry governing body, providing us with peace of mind for the future. Employees can also take their pensions with them when they move practice, so it’s a win-win situation all around.
What are the main benefits the RIBA Pension has to offer?
Low fees, security and peace of mind.
Has the RIBA Pension helped to take away the stress of having to comply with the auto-enrolment rules?
Most definitely. It would have been a time-consuming job looking around for a provider, so this has saved us both time and money.
unit3 is not the only practice who are experiencing the benefits the RIBA Pension has to offer...
Simon Bassett is the Finance Director at Perkins + Will, a RIBA Chartered Practice based in London and employs around 2,500 members of staff worldwide. Notable projects include the Mary Rose Museum, The Stage in Shoreditch and the Barclays Headquarters in Canary Wharf. Perkins + Will were one of the first companies to sign up to the RIBA Pension back in July 2014.
We quizzed Simon on his experience using the RIBA Pension.
What are the main benefits the RIBA Pension has to offer?
Low management charge, a helpful and responsive support team at RIBA and an easy to use online portal for members of the pension scheme.
Do you agree that the RIBA Pension offers a flexible approach to saving for your retirement?
Agreed. For architects who may not understand pensions, RIBA does offer a flexible approach.
Has the RIBA Pension helped to take away the stress of having to comply with the auto-enrolment rules?
The production by RIBA of the letters to be issued to new staff each month is great - all I need to do is print off and sign!
How we can help
We want to provide our members with a simple solution to fulfilling your auto-enrolment needs, hence why we have evaluated other pension schemes on the market and come up with a solution that matches or beats the competition on key criteria such as cost, quality and ease of management. Check how the RIBA Pension compares to others in the market.
Find out more about the RIBA Pension and how it can be beneficial for your practice.
We can help make your workplace pension scheme easy, so don’t get caught out, ensure your practice is compliant by getting your auto-enrolment solution in place.
Find out more about the RIBA Pension by contacting the team at ribapension@riba.org or +44(0)20 7307 3737.
