3 years on from the start of Auto-Enrolment and it’s time for re-enrolment!

3 years on from the start of Auto-Enrolment and it’s time for re-enrolment!
Adele Blackham
Written by Adele Blackham
Friday, 15 January 2016 12:01

They say time flies when you are having fun and the the three years since Auto Enrolment came a reality has been lots of ‘fun’ for employers, pension and payroll providers, payroll software developers and employees as they get to grips with auto-enrolment.

The companies included in the early staging dates are now approaching their three-year re-enrolment window.

So what is re-enrolment?

Auto-enrolment is a three-year cyclical process. So those people who have opted out of your auto enrolment pension scheme in the two years after your staging date will be re-assessed and enrolled into a qualifying work place pension scheme. It is a way of trying to ensure the maximum take-up of work place pensions.

Your employees will still have the option of opting back out if they wish to do so, but in a further three years the process will be repeated and so on and so on.

What will be the impact on you as an employer?

  • You will need to choose a cyclical automatic re-enrolment date from a six month window which starts three calendar months before the third anniversary of your staging date (not you postponement date if used) and ends three months after
  • This date is for you as an employer and you cannot pick different dates for different categories of employee
  • There is no postponement date available on re-enrolment
  • You have an obligation to write and inform all eligible employees if they are to be enrolled into the scheme and complete a declaration of compliance with the pension’s regulator
  • All re-enrolled employees will have the option to opt-out as previously

The impact on your business will depend on how many employees you have who opted out at the initial auto-enrolment.

If you would like to discuss this further or would like support through your re-enrolment process, please contact us.

Adele Blackham

Adele joined the company in September 2012 as Operations Manager to oversee an increasing number of client and development projects. With 25 years of payroll experience in some of the UK's largest companies Adele has seen it all and has a proven track record when it come to managing projects.

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