Automatic enrolment


Automatic re-enrolment and re-declaration

 

Auto enrolment commits employers to a variety of ongoing tasks including automatically re-enrolling any member of staff who may have opted out or ceased active membership of the scheme, and re-declaring their compliance with auto enrolment legislation.

Automatic re-enrolment

Having been automatically enrolled into a qualifying workplace pension scheme (‘QWPS’), eligible jobholders have the right to leave the scheme should they wish to do so – however, employers are required to automatically re-enrol them after a period of time.

Automatic re-enrolment means you must re-assess any eligible jobholder who:

  • chose to ‘opt out’ of the scheme during the month-long opt out period that followed auto enrolment,
  • left the scheme after the opt out period and ‘ceased active membership’,
  • chose to reduce their contribution so that total contributions fell below the minimum required by your QWPS.

If one of these events took place more than 12 months before your ‘re-enrolment date’ (see below) and they qualify as an eligible jobholder, you must automatically re-enrol them back into your QWPS. If the event happened within the 12 months preceding your re-enrolment date you have the option of re-enrolling them if you want to, but you’re not legally required to do so.

Re-enrolment date

Automatically re-enrolling any eligible jobholders you employ takes place on your re-enrolment date. If you don’t need to automatically re-enrol any staff you don’t need a re-enrolment date – and that means that the first thing you should do is carry out an informal re-assessment of your staff as the outcome will determine the course of action you take.

As an employer you are free to choose your re-enrolment date but it must fall within a period of time three calendar months either side of the third anniversary of your original staging date. So, for example, if your staging date was 1 August 2016, the third anniversary will be 1 August 2019. Three months before is 1 May 2019 and three months after is 31 October 2019, which means you can choose any date between 1 May 2019 and 31 October 2019 as your re-enrolment date.

This six-month ‘window of opportunity’ allows you to choose a re-enrolment date that is compatible with your organisation’s business calendar, for example, you may want it to coincide with a staff pay date or avoid a seasonal peak in activity.

Once you have chosen your re-enrolment date every member of staff who qualifies for automatic re-enrolment must be re-enrolled on that date. It’s not possible to postpone automatic re-enrolment, offering flexibility in the date you choose is designed to cover any need to do so.

If you do need to automatically re-enrol eligible jobholders back into your QWPS, the re-enrolment date you choose also determines the date by which you have to submit your re-declaration of compliance to The Pensions Regulator.

Re-declaration of compliance

All employers must re-declare their compliance with auto enrolment legislation every three years, however, whether or not you have to automatically re-enrol staff affects the date by which you have to do so. There are two options:

    1. If you are not automatically re-enrolling staff, you must submit your re-declaration by the day before the date of the third anniversary of your original declaration of compliance (note: not your re-enrolment date).
    2. If you are re-enrolling staff, you must submit your re-declaration within two months of your re-enrolment date.

Re-declaration of compliance is a mandatory duty and failure to complete it on time could lead to fines and prosecution.

Re-enrolment and re-declaration dates – a quick summary

A staging date of 1 August 2016 was used earlier in the text to illustrate how the re-enrolment date ‘window’ is generated. Using this date to summarize a potential calendar of events:

Staging date

 

This is fixed, but let’s say it was:

1 August 2016

  • so, the third anniversary will be:

1 August 2019

   

Declaration of compliance

 

This has to be submitted within five months of the staging date, so let’s say you submitted it on:

19 September 2016

  • which means the third anniversary will be:

19 September 2019

 

 

Automatic re-enrolment date

 

The third anniversary of your staging date is:

1 August 2019

  • so, three months before is:

1 May 2019

  • and three months after is:

31 October 2019

Your automatic re-enrolment date can be any date in this ‘window’, ie any date between:

1 May and 31 October 2019

The date you choose, as it best suits your organisation’s requirements, is:

15 October 2019

 

 

Re-assessment cut-off date

 

This is 12 months before your automatic re-enrolment date, so:

15 October 2018

 

 

Re-declaration of compliance date

 

No staff need to be auto re-enrolled,

  • so it’s the day before the third anniversary of your declaration of compliance (which is 19 September 2019) so:

18 September 2017

Staff do need to be auto re-enrolled,

  • so it has to be submitted within two months of your auto re-enrolment date (which is 15 October 2019), so by:

15 December 2019

 

How can One Financial Solutions help you?

One Financial Solutions is here to help you. We can plan and implement everything necessary to ensure you comply with the new legislation and fulfil your legal obligations.

If you already have a workplace pension scheme we’ll review it to make sure it can be used and will recommend any changes that may be needed. If you need a new scheme we’ll find one for you and, as a truly independent firm of financial advisers, we’ll make sure the scheme we recommend is selected from the entire market and is the one that is best for both you and your staff.

More than that, if you’d like us to administer the entire scheme for you, we can do that too.

So, if you’re looking for specific help about auto enrolment or just want advice on the subject, please call us on 020 3714 9565 or ask us to call you by sending an email to admin@onefinancialsolutions.co.uk.