What is automatic re-enrolment?
Every 3 years, certain members of staff must be re-enrolled into an automatic enrolment pension scheme. Employers will also need to complete a re-declaration of compliance to tell The Pensions Regulator (TPR) how their duties have been met.
Anyone who automatically enrolled staff in 2014 into a qualifying pension scheme will have their re-enrolment date in 2017.
The Pensions Regulator will send employers a series of letters and emails telling them of what they need to do and by when. It is, therefore, important that the employers contact details are kept up to date with the regulator.
There are four steps to the re-enrolment process:
1. Choose your re-enrolment date
Employers must choose a re-enrolment date within a 6-month enrolment window. The 6-month enrolment window starts 3 months before and ends 3 months after the third year anniversary of an employer’s automatic enrolment staging date.
Postponement cannot be used on any staff who need to be re-enrolled.
2. Asses your workforce
Certain staff will need to be assessed at the re-enrolment date, to work out if they need to be put back into the workplace pension scheme.
Staff must be assessed if they have:
- Opted out of the pension scheme.
- Ceased active membership of the pension scheme after the end of the opt-out period.
- Stayed in the pension scheme but chosen to reduce their contributions below the minimum level set by law.
There is no need to assess staff who on the re-enrolment date are:
- Already in the qualifying pension scheme.
- Are aged 21 or under
- Are at state pension age or over
- Are currently being postponed for automatic enrolment (eg a new employee)
Any employees that need to be re-enrolled, must be put back into the pension scheme and start contributing to the scheme. This must be done within 6 weeks of the re-enrolment date.
3. Write to the staff that you have re-enrolled
The employer must write to any re-enrolled staff individually within 6 weeks of the chosen re-enrolment date, to inform them that they have been put back into the workplace pension scheme.
4. Complete a re-declaration of compliance
Re-declaration is an online form which tells The Pensions Regulator what the employer has done to meet their re-enrolment duties. Even if no employees have been re-enrolled the declaration must still be completed. This must be completed and submitted within 5 months of the re-enrolment date. The declaration must be completed accurately and on time to prevent fines being issued.