Auto Enrolment, Re-enrolment is here
Pension guidelines dictate that employers must run a re-enrolment process for their employees every 3 years from the company’s original auto enrolment staging date. This means that any employer who originally staged for auto enrolment in 2014 will need to re-enrol this year. Your re-enrolment date can be any time within a 6 month window of the 3rd anniversary of your staging date, therefore you could choose to re-enrol up to 3 months prior to the due date or delay to up to 3 months after.
Which employees does this affect? All employees who have previously been assessed for auto enrolment and have:
- opted out of their automatic enrolment pension scheme
- left the pension scheme under the scheme rules, but not as an opt-out (ceased membership)
- stayed in their pension scheme but have chosen to reduce the level of pension contributions to below the minimum level required by automatic enrolment
If any of the above events took place more than 12 months prior to your company re-enrolment date you must re-enrol the employee into a pension scheme if they meet the criteria on age and earnings. If the above events took place within the 12 months to your re-enrolment date, you can choose to re-enrol your employee but do not have to.
You are not entitled to postpone employees once you have chosen your re-enrolment date, therefore any employee meeting the required criteria at your re-enrolment date must be enrolled into a pension scheme.
Employee options? Once you have re-enrolled your eligible employees into the pension scheme the employee will have the right to Opt out in the same way as when they were originally enrolled.
Once you have gone through the re-enrolment process you need to complete a re-declaration of compliance, this must be done within 5 months of the 3rd anniversary of your original staging date.
Please contact our payroll team at firstname.lastname@example.org – 01904 464 100 or fill in our contact form below: