As part of your ongoing auto enrolment duties, you are responsible for automatically re-enrolling all eligible job holders who are not active pension members back into your organisation’s pension scheme every three years following your initial auto enrolment staging date. This is known as statutory pension auto re-enrolment (sometimes named “cyclical re-enrolment”).
Planning ahead for this is essential to ensure that you are aware of your duties and obligations, and to know what actions you are required to take. Here are some hints and tips to help with this process.
Choose your re-enrolment date
There is a six month window to choose a suitable re-enrolment date, which extends. three months either side of the third anniversary of your staging date. For example, if your staging date was 1st June 2013 then your six month window would be between 1st April 2016 and 30 September 2016.
You cannot apply for a postponement period and you must use the same re-enrolment date within the three year period for all employees.
There is no requirement to inform The Pension Regulator of your chosen re-enrolment date until completing the re-declaration of compliance.
Assess your employees
You will need to carry out an assessment of any employees who have, more than twelve months prior to the chosen re-enrolment date:
• opted out of your automatic enrolment pension scheme;
• stopped paying pension contributions after the opt-out period ended; or
• reduced their contributions to below the minimum level set by the government.
You also have the option to re-enrol eligible jobholders who left the scheme or reduced their contributions within the 12 month period prior to your chosen re-enrolment date, however you are not obliged to do so.
Re-enrol your employees
After assessment, any eligible employees must be re-enrolled into a qualifying pension scheme within six weeks of the re-enrolment date. You should also write to all employees affected by re-enrolment within the same six week window.
As with auto enrolment, a one-month window applies during which, re-enrolled eligible employees will have the opportunity to opt out or cease membership if they choose to. Opt out notices should be processed, refunds issued where necessary and records kept accordingly.
A re-declaration of compliance must be completed and submitted to The Pension Regulator, regardless of whether you have employees to re-enrol within five calendar months of the third anniversary of your staging date (or last re-enrolment date). If you do not complete the re-declaration on time you could face a fine from The Pension Regulator or even prosecution.
Once you have submitted your re-declaration to The Pensions Regulator, they will send an acknowledgement letter. This will complete your cyclical re-enrolment duties until your next re-enrolment window in three years time.
A link to the online re-declaration is provided below:
If you have a question about pension auto-enrolment or re-enrolment, don’t hesitate to get in touch at email@example.com.