Get to work on pensions re-enrolment
MANY AUTOMATIC enrolment workplace pension schemes will now be reaching their third anniversary and if you are an employer, you may now need to start thinking about re-enrolment. WHEN DO I NEED TO DO THIS? Your re-enrolment date is chosen by you. You have a six-month window from which you can select the date. This window starts three months before and ends three months after the third anniversary of your automatic enrolment staging date.
On the chosen date, your payroll, HR and software processes must be ready to go.
WHOM DO I NEED TO RE-ENROL?
You will need to identify certain eligible employees who have ceased active membership of your workplace pension scheme.
The definition of an eligible jobholder is the same for re-enrolment as it was for automatic enrolment. They are employees who: First, focus on which employees are eligible for re-enrolment
Normally work in the UK
Earn above £10,000 a year (2017/18 tax year) pro-rata per payment period. Are aged between 22 and state pension age.
HOW DO I ENROL THEM?
Speak to your payroll provider to check how they are approaching automatic re-enrolment. Ideally they will manage some of the process but you will still need to notify the payroll team of your re-enrolment date and possibly prepare communications to workers.
Your payroll provider can assess which of your employees are eligible jobholders, out of those who have stopped contributing to the workplace pension. They can then let you know which of your employees should be re-enrolled and in turn you can notify your workplace pension provider.
WHAT ELSE DO I NEED TO DO? You will need to notify all workers of re-enrolment who are not currently part of your workplace pension scheme. You are also legally required to re-declare your compliance on the Pensions Regulator website, to show you have complied with your employer duties.
Failure to complete the declaration may result in a fine.
Payroll, HR and software must be ready to go’
WHO CAN HELP?
This is not an exhaustive list of what needs to be done. Our consultants can provide further information on how to complete the reenrolment process or can do this for you. This may be a good opportunity to review your workplace pension and refresh yourself in this area, with statutory contributions due to increase in April 2018 and April 2019.
Adam Katten is managing director of NLP Financial Management, 020 7472 5550, adam.katten@nlpfm.co.uk