Re enrolment of pensions
This year marks the third year of auto-enrolment. Re-enrolment must be carried out every three years for the staging date. Firstly, employees who opted out of their workplace pension must be re-enrolled into the pension scheme. Secondly, employers must complete and submit the on-line re-declaration of compliance form to show The Pensions Regulator how they have met this responsibility.
Although this is important at any time The Pensions Regulator has advised that they will be carrying out Pension checks. The Pension checks will be in the form of short-notice inspections by phone or to your business premises. Below is the process you must follow:
.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.
Unlike the original auto-enrolment staging process, postponement cannot be used on any eligible employees who need to be re-enrolled.
Employers must assess their workforce and re-enrol, eligible staff
Employers must identify all eligible employees who are not currently members of the 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 selected re-enrolment date, the employer can decide to enrol those eligible employees automatically 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.
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.
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.
If you feel you would like to talk to us about the enrolment process, please do not hesitate to contact us on email@example.com