Pension re-enrolment made easy

Pensions, who needs ‘em eh? Well, actually...kind of everyone; they’re quite important. But look, we’ve all been there - your pension comes out of your paycheck and you die a little inside thinking of all the lovely clothes or holidays you could have spent it on. And you’re young! So you think “what the hell, I’ll just opt out for a little bit, take a little break, and then I’ll sign back up again”. But decades pass and you finally hit retirement age and have no way of sustaining your lavish lifestyle or the 75 cats you’ve accumulated.

As an employer, you have probably seen this happen time and time again. That’s why every 3 years you need to put certain staff back into the auto enrolment pension scheme. This is called - wait for it - re-enrolment (very jazzy) and it’s Stage 1 of a 2-Stage process. There are certain steps that you as an employer will need to carry out to meet your re-enrolment duties and make sure your employees don’t make themselves financially destitute. Because, just to make this clear, the onus is on the employer - not the employee - to re-enrol.

So, how do you know if you need to re-enrol an employee? On the 3rd anniversary of their duties start date (previously known as their staging date), you should assess staff who have left the auto-enrolment scheme to see if they meet the age and earnings criteria to be re-enrolled. What’s the duties start date? A duties start date, or staging date, is the date that the Government and The Pensions Regulator say that your company must have a compliant pension set up by.

If the staff members meet the age and earnings criteria, then you need to put them back into your pension scheme (whether they like it or not!). You will also need to increase the contributions for any staff who are paying below the minimum contribution level. Once this is all done, you will need to inform your employees that they have been re-enrolled.

Last but not least (and this is a legal requirement aka you will be fined if you don’t do it), you will need to complete a ‘re-declaration of compliance’ online, which is Stage 2 of the process. The re-declaration of compliance notifies The Pensions Regulator that you have met your re-enrolment duties and whether or not you had anyone to put back in your scheme.

If you’re stuck or need help and guidance you can go to www.tpr.gov.uk/reenrol-info OR you could use a payroll software that will simplify your re-enrolment duties.

BrightPay is an award-winning payroll software that automates auto-enrolment duties - including re-enrolling employees - for both employers and payroll bureaus. Better still, while most other payroll software providers charge extra for this service, full auto-enrolment functionality is included in all BrightPay licences at no extra cost.

Head on over to BrightPay and check out all the amazing ways in which BrightPay can make not just re-enrolment, but all auto-enrolment duties feel like a walk in the park.

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Written by Aoibheann Byrne
BrightPay Payroll Software

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Karen Bennett
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