Is your auto re-enrolment anniversary on the horizon?

The top 5 things ALL employers should know about re-enrolment

Automatic re-enrolment is the process where all employers must re-enrol certain employees into an auto enrolment compliant pension scheme, if they are not already members of one.   As with the original staging process, some advance planning is required with the re-enrolment process.

1. Re-enrolment takes place three years from the original staging date

The employer is required to select the re-enrolment date, within a six month window. This window starts three months before and ends three months after the third anniversary of your automatic enrolment staging date. All employees must have the same re-enrolment date.  The employer does not need to inform The Pensions Regulator (TPR) of their chosen re-enrolment date until they complete their re-declaration of compliance.

2. Postponement cannot be used

Unlike the original auto enrolment staging process, postponement cannot be used on any eligible employees who need to be re-enrolled.

3. Employers must assess their workforce and re-enrol certain eligible staff

Employers must identify all eligible employees who are not current members of their auto enrolment compliant pension scheme and re-enrol them with effect from the employers chosen re-enrolment date. This would apply to those employees who have:

• previously been assessed for auto enrolment and have opted out of the auto enrolment pension scheme or ceased active membership
• remained in the scheme but have chosen to reduce their pension contributions to below the minimum amount required by auto enrolment

If any of these events happened within the twelve months of the chosen re-enrolment date, the employer can decide to automatically enrol those eligible employees, but are not required to do so.

Employers are then required to write to those staff who are being re-enrolled individually (email is acceptable) within six weeks of the chosen re-enrolment date.

4. Opting out

As with the original staging process, those eligible employees that have been automatically re-enrolled will remain in the pension scheme unless they choose to opt out. These employees have one month to opt out of the pension scheme.  Employers must keep records of any opt out notices.

5. Re-declaration of Compliance

Employers must complete their re-declaration, even if they don’t have any employees to re-enrol.  This must be submitted to TPR within five months of the third anniversary of the original staging date.  The re-declaration deadline submission date does not change even if an employer chooses to have a different re-enrolment date from the staging date.

Our payroll clients can be assured that our payroll team have this in hand and they will be in touch with you nearer your anniversary date.

If  you feel you would like to talk to us about the re-enrolment process,  please do not hesitate to contact us and you will be put through to one of our payroll team.