Since February 2018, all eligible workers in the UK are automatically enrolled into a workplace pension scheme by their employer. However, there is the option to opt out of this scheme within a month of being enrolled.
Eligible jobholders are classified as employees who work in the UK, earn above £10,000 a year (2018/2019 tax year) and are aged between 22 and state pension age.
Re-enrolment is the process where you must re-enrol employees into a pension scheme if they are not already an active member of one. This process takes place every three years, as the Government want to put employees who have ceased active membership back into a pension scheme.
It is important to take into consideration you next cyclical six-month re-enrolment window because once you have chosen the date; this will remain the same every three years’. This should start three months before the third anniversary of the date their legal duties began, and end three months after it.
To enrol a staff member you must write to the individual within six weeks of their chosen re-enrolment date, to inform them how re-enrolment applies to them.
You must also re-declare your compliance with The Pensions Regulator, as this is a legal requirement that needs to be completed within five months of the third anniversary of the employers staging date or duties start date, to show you’ve complied with your employer duties.
If you do not complete this by the deadline, you may incur fines from a £400 fixed penalty to a varying daily escalating penalty from £50 to £10,000.
Here at JW Hinks, our team can advise you on how to enrol and re-enrol your employees into a workplace pension scheme.