Re-enrolment takes place every three years following your staging date. It’s a process where you must re-enrol certain members of staff into an auto enrolment pension scheme, if they’re not already members of one. Here’s a guide to what you have to do and by when?
Choose your re-enrolment date
You have a six-month window, which commences three months before the third anniversary of your staging date and ends three months after. You can find your dates for re-enrolment here. You will need your PAYE reference number and your letter code. Both can be found on the letter you receive from The Pensions Regulator. This date applies to all staff.
Next – Assess your staff
You don’t need to assess all staff members. Those already in the (qualifying) pension scheme or who are “exempt” don’t have to be assessed. Exempt staff are those who are under 21 years old, or stage pension age or over.
All staff who have opted out of the scheme must be assessed.
Next – Inform staff that you’ve re-enrolled
Within six weeks of your re-enrolment date it’s your legal duty to write to each member of staff informing them that you have put them back in the scheme. Download an example re-enrolment letter.
Finally – complete your re-declaration of compliance
The declaration has to be completed online. It shows that you have met your legal duties on time and that the information is accurate. It not you may be subject to fines.
Can my staff opt out?
Yes, if any members want to leave the pension scheme within one month of being re-enrolled, you need to stop deducting money out of their pay and arrange a full refund of what has been paid to date. This must happen within one month of their request.
Remember your ongoing duties
Keep an eye on the ages and amount you pay to your staff (including new starters) to see if you need to put them into a scheme. If they are aged between 22 up to state pension age and earn over £10,000 per year (£833 per month) you must put them into a scheme. You need to write to them within 6 weeks and both pay into the scheme.
Contributions increases April 2019
From 6 April 2019, by law the minimum amount you pay into your staff’s pension will go up. You must pay a minimum of 3% of a portion of your staff’s earnings* into their pension, and the total combined payments made by you and your staff must be no less than 8%. Find out more about contribution increases.
*The law requires that, as a minimum, pension contributions will be based on your staff’s earnings between £6,032 and £46,350.
Payroll clients of My Accountancy hub will be guided through this process and staff will be monitored during each payroll run, making sure you are fully compliant. If you have any questions about this article or need help call us on 0151 931 2724 or email contact@myaccountancyhub.co.uk
