How do I choose a re-enrolment date? Aug 13, 2021Views: 311
One of your legal and mandatory duties as an employer is to fully comply with automatic enrolment. Automatic enrolment was introduced in the UK to help more people save for later life through a workplace pension scheme. The Pensions Regulator recommends that employers use payroll software that will cater for and handle the auto enrolment duties.
Every three years you must put certain staff who have left your pension scheme back into it. This is called re-enrolment. Whether you have staff to put back into your scheme or not, you must complete a re-declaration of compliance to inform The Pensions Regulator that you have met your duties.
How do I choose a re-enrolment date?
Re-enrolment occurs every 3 years from your staging date. Your re-enrolment date is chosen by you, and you have a 6-month window to choose from. The 6-month window rule means that you can choose a date three months before your staging date and up until three months after it.
Once you reach your re-enrolment date, you must assess employees to determine whether they meet the criteria to be automatically re-enrolled into your pension scheme. Employees must be informed in writing if they are being re-enrolled into a workplace pension scheme.
Remember, re-enrolment and re-declaration are legal duties that you must complete and if you don't act you could be fined. The re-declaration must be completed within five months of the third anniversary of your automatic enrolment staging date. The Pensions Regulator website has full details on the requirements and process here.
Automatic re-enrolment in BrightPay
All BrightPay licences include full auto enrolment functionality at no extra cost. When you reach your re-enrolment date in the payroll, BrightPay will automatically assess your employees for you. If employees meet the criteria for re-enrolment, the software will notify you to let you know that you have re-enrolment duties to carry out. BrightPay will automatically prepare the employee’s enrolment letter, which must be provided to the employee within the six-week period after your re-enrolment date. These letters can be printed, exported to PDF, emailed to the employee, or if you are using BrightPay Connect, the letter can also be added to the employee’s self-service portal.
What happens if I don’t comply?
As re-enrolment is a legal duty for an employer and if you don’t comply you could face hefty fines. The Pensions Regulator may take enforcement action which includes compliance notices and penalty notices (fines).
If you haven’t met your legal duties, you may first get a warning letter with a deadline for you to meet your duties. If you don’t meet your duties within the deadline provided, you may be sent a statutory notice. The Pensions Regulator can issue penalty notices if you fail to comply with statutory notices. They can also issue a fixed penalty notice which is £400. If you still don’t comply, you could face a daily rate fine of £50 up to £10,000 (depending on the number of employees). However, if you believe that you should not have been issued a notice, you can appeal. Lastly, if you knowingly fail to enrol eligible staff into a workplace pension scheme you could face prosecution as it is a breach of compliance and is seen as a criminal offence.
Book a free 15-minute online demo today to discover how BrightPay can help you with your automatic enrolment duties. You can also find useful online help documentation and step-by-step video tutorials on our website.
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