Businesses due for re-enrolment

Posted by PayeStaff

What is automatic re-enrolment?

Automatic re-enrolment is a process that occurs every three years whereby businesses must re-enrol eligible staff into a qualifying auto enrolment pension scheme.

Your duties as an employer will depend on whether you have eligible staff to re-enrol, but a re-declaration of compliance to inform the Pensions Regulator as to how these duties have been met.

Your duties will vary depending on whether you identify that you have staff to re-enrol, or whether you have no staff to re-enrol. Either way, you will need to complete a re-declaration of compliance to tell The Pensions Regulator how you have met your duties.

Remember, re-enrolment and re-declaration is your legal duty and if you don’t act you could be fined.

Who does it apply to?

Any business that has an auto enrolment pension scheme in place.

Re-enrolment for 2017 applies to those companies who staged in 2014.

If you are unsure of your staging date you can find out here with your PAYE ref number

How do you re-enrol?

  1. Choose a re-enrolment date – Choose your re-enrolment date from within a six-month window, which starts three months before the third anniversary of your automatic enrolment staging date and ends three months after it.

The date chosen must be anywhere between three months prior to three months after your original staging date. e.g. A staging date of 1st September 2014 would mean that the re-enrolment date would need to be between 1st June 2017 and the 30th November 2017.

  1. Assess eligible staff

Those staff that are eligible must be re-enrolled into the scheme from the re-enrolment date chosen above and the employer must start paying any contributions to the scheme from this date.

Staff that have left the scheme (either through opt-out or ceasing active membership) and those who elected to make contributions below the minimum legal requirement are to be assessed.

Those staff that are already in the auto-enrolment pension scheme or have been postponed (e.g. a new member of staff) do not need to be assessed. As with auto-enrolment those staff 21 or under or those of state pension age or above also do not need to be assessed.

The employer must then write to staff individually within six weeks of the re-enrolment date, to explain how automatic re-enrolment applies to them. Unlike automatic enrolment a period of postponement is not available for those staff that are assessed as eligible.

  1. Complete the re-declaration of compliance

As with the process of automatic enrolment a declaration of compliance must be completed within five months of the third anniversary of the employer’s original staging date.

To complete your re-declaration of compliance please click here

Alternatively, please speak to a member of the PayeStaff Team about how we can complete this for you.

We recommend that you ensure your contact details registered with the Pensions Regulator are current as they should send a series of letters and emails to remind you of your duties and key dates.

For more information please see the Pension Regulator website