In-Accountancy

News and Views

Auto-Enrolment and the Rules around Re-Enrolment

Important information regarding auto-enrolment and re-enrolment

It’s hard to believe that auto-enrolment was introduced three years ago already! For those smaller businesses who only implemented auto-enrolment a short time ago, it seems there have already been a number of changes and updates. Here’s just one more for you:

  • Every three years you must put certain members of staff back into an automatic enrolment pension scheme. This is called re-enrolment.
  • Re-enrolment duties must be completed approximately three years after your automatic enrolment staging date.
  • You will also need to complete a Re-declaration of Compliance to confirm to the Pension Regulator you have completed your duties.

Please note that if you are already exempt and have advised The Pensions Regulator to this effect, then unless your situation in relation to employees has changed, you need do nothing further.

Please be aware that re-enrolment and the re-declaration of compliance are legal duties and if you don’t act you could be fined.

The steps to follow are very much like those for your original auto-enrolment:

  1. Choose a re-enrolment date (You should do this now)
  2. Assess and re-enrol staff  (You should do this on your re-enrolment date)
  3. Write to staff you have re-enrolled (You must do this within six weeks of your re-enrolment date
  4. Complete your Re-declaration of Compliance (You must do this within five months of the third anniversary of your staging date)

Please note that:

  • Your re-enrolment date is a date chosen by you when you will assess your staff for re-enrolment.
  • You have a six month ‘window’ from which you can choose a re-enrolment date. This window starts three months before and ends three months after the third anniversary of your automatic enrolment staging date.

You only need to assess certain staff for re-enrolment – those for whom one of the following apply:

  1. If they previously asked to leave or opted out of your pension scheme
  2. If they left your pension scheme after the end of the opt-out period
  3. If they stayed in your pension scheme, but chose to reduce the level of pension contributions to below the minimum level, and they meet the age and earnings criteria to be re-enrolled.

You can leave out any staff member who, on your chosen re-enrolment date:

  1. Is already in the pension scheme you use for automatic enrolment and contributing the minimum level of contributions
  2. Is aged 21 or under
  3. Is at state pension age (SPA) or over, has not yet met the age and earnings criteria for automatic enrolment, or has been postponed
  4. Has opted out or asked to leave your pension scheme during the 12 months prior to your re-enrolment

If you work out you have staff to put back into your pension scheme you must re enrol them to the pension scheme and write to confirm their re-enrolment. Staff re-enrolled can opt out if they do not wish to remain a member of the scheme, if they opt out during their 30 day opt out period any pension contribution deducted from their salary can be refunded.

If you work out you do not have staff to put back into your pension scheme you can go straight to completing your Re-declaration of Compliance

If you set up your PAYE scheme on or after 1 October 2017 and are unsure of your obligations concerning auto-enrolment, please do not hesitate to contact us and we will assess and advise on your position.

 If you have any questions concerning re-enrolment please do not hesitate to contact us.

Related articles

IN-ACCOUNTANCY