It doesn't seem that long ago that we were talking to employers about setting up an auto enrolment pension scheme and the eligibility of their staff to join the scheme. We held a seminar for our payroll clients to talk them through what was involved in
So now we are almost at the point of pension Re-enrolment! Three years from the employer's original Staging Date the employer must re-enrol into the auto enrolment pension scheme any eligible employee who has previously opted out unless they only opted out within the last 12 months.
The Re-enrolment date can be at any time up to 3 months before the Staging Date and 3 months after the Staging Date. So effectively there is a 6 month window to carry out the process, however it makes sense to do it on your original Staging Date.
Any employee who is re-enrolled in the pension scheme must receive a letter within 6 weeks of the Re-enrolment date advising them that they have been re-enrolled and of course pension contributions must be deducted from their pay and made by the employer at the first pay period following the Re-enrolment date. Postponement cannot be used for employees in this situation.
A Declaration of Re-Enrolment must be completed within 5 months of the three year anniversary of the original Staging Date.
And in April 2019 pension contributions will increase to 3% for employers and 5% for employees.
If you need help with your pension scheme contact Karen Reynolds, our friendly, helpful Auto Enrolment specialist, on 01722 341820.
Or visit The Pension Regulator website to find out more.
