First we had auto enrolment, well now we have re-enrolment! In this blog I’m going let you know what your duties are when it comes to re-enrolment and how to stay compliant with legislation. We have put together some pension advice for businesses in Grimsby & Cleethorpes, and wanted to share it with you.

So tell me, what is re-enrolment?

Every 3 years you must re-enrol certain employees back into the pension scheme. Re-enrolment occurs on the 3rd anniversary of your staging date. Regardless of whether you have staff to re-enrol you must still re-declare compliance with the Pensions Regulator. Failure to re-declare could mean that you will be fined by the Pensions Regulator.

 

What are your responsibilities:

• You must set a re-enrolment date prior to the anniversary. This can be any date that falls three months before or three months after the third anniversary of your staging date.
• After you have selected the date you must re-assess the staff that meet the criteria and re-enrol them into the pension scheme.
• You must then write to those staff members to let them know that they have been re-enrolled within 6 weeks of re-enrolment
• Compliance must then be re-declared (this must be submitted within 5 months of the third anniversary)

How do you identify the employees to re-enrol?

You will need to re-assess certain staff members on the chosen re-enrolment date.

The staff that this applies to are:

• Employees that opted out of the pension scheme
• Employees who ceased active membership or stopped regular contributions

This will only apply if the employee left the scheme more than 12 months prior to the chosen re-enrolment date. Staff that have opted out less than 12 months ago will be included in the next re-enrolment (the next 3 year anniversary)
If the employee falls within this criteria but no longer meets the requirement for earnings (they now earn less than £10,000 per anum) they will not need to be re-enrolled just monitored.

Re-enrolling

Once the employees have been successfully re-enrolled they must be put back into the pension scheme. As an employer you must then write to those employees within six weeks to let them know that they have been re-enrolled.

Opting out

After the employees are re-enrolled they will remain in the scheme unless that is they choose to opt out. Staff have up to one month to opt out and obtain a full refund on contributions. Basically it is the same as when they were enrolled first time around.

Re-declaration

After the re-enrolment has taken place employers have a 5 month period to re-declare compliance with the pensions regulator. Even if no employees were re-enrolled you must still resubmit the declaration to inform the Pensions Regulator that there has been no change in circumstances.

It isn’t so bad is it?

The thought of auto enrolment was scary however this is now something we have all incorporated into our daily routine so re-enrolment should be a walk in the park! If you still feel like you require a helping hand then please contact our dedicated payroll team on 01472 604628