Introduction to automatic re-enrolment

Thanks to auto-enrolment most employers now provide their staff with a workplace pension.

Although you are probably running your workplace pension scheme smoothly, it is important not to forget your ongoing responsibilities.

One of which is automatic re-enrolment which happens every 3 years. This is the task of re-enrolling workers who are eligible for auto-enrolment but not part of a scheme.

Although this may sound like another administrative burden to contend with, it is likely to be less time-consuming than starting the process of auto-enrolment.

This is because the process focuses on people who are not contributing to your pension scheme - usually because they opted out.

So if most of your team are contributing to a pension through auto-enrolment, your burden will be diminished.

This guide gives an overview of the main tasks.

Set your re-enrolment date

You can choose any day within 3 months either side of the third anniversary of your original staging date.

For example, if your initial staging date was 1 April 2015, you could choose a re-enrolment date any time between 1 January 2018 and 30 June 2018.

This 6-month window gives you the chance to align your re-enrolment date with other business events.

For example, you might want it to coincide with your financial year-end or to avoid a busy period.

Re-enrol workers

On your re-enrolment day you will need to assess people who:

  • opted out or left your auto-enrolment pension scheme 
  • are in the scheme but pay less than the minimum contributions.

The next step is to assess these workers to see if they meet the criteria for auto-enrolment. This is exactly the same process as when you have a new employee.

Broadly speaking, someone will be eligible for auto-enrolment if they are:

  • between 22 and state pension age
  • work in the UK
  • earn more than £10,000 (for the 2017/18 tax year).

If any of your workers meet these conditions, you will need to enrol them into your pension scheme.

Inform the Pensions Regulator

Let the Pensions Regulator know you have met your duties - this is known as a re-declaration of compliance.
There is a lengthy list of information to provide, including:

  • your PAYE scheme reference 
  • details about your pension scheme
  • the number of staff you re-enrolled.

The deadline is 5 calendar months after the third anniversary of your original staging date.

Ongoing responsibilities

It's important not to forget your ongoing responsibilities, such as:

  • managing opt-outs
  • keeping records
  • making employer contributions
  • deducting employee contributions.

Talk to about managing automatic re-enrolment.