Financial Update Oct Nov 2019 Newsletter

7 his October marks the seventh anniversary of the start of workplace pension auto- enrolment, with 85% of eligible private sector employees now enrolled according to recently published figures. The Pensions Regulator is concerned that some employers are failing to complete re-enrolment correctly, with the risk of incurring a fine, and has now launched a new online re-enrolment tool to make the process clearer. The re-enrolment date is the three-year anniversary from your business’s original staging date, but there is a three-month leeway either side of this date. For example, with a staging date of 1 February 2017, re-enrolment can be done anytime between 1 November 2019 and 30 April 2020. You can check using the re-enrolment date tool. RE-ENROLLING EMPLOYEES Employers must check whether they have any sta to re-enrol and ensure those who are eligible are added back into a pension scheme. ■ This means assessing those sta who have left your pension scheme, or who have reduced their contributions into it (they are not considered as being members of a qualifying scheme). ■ If you have any sta to re-enrol, they must be automatically enrolled into your pension scheme within six weeks of the re-enrolment date. Any re-enrolled sta should be sent an explanatory letter. ■ Re-enrolled sta have one-month in which they can opt out of your pension scheme. RE-DECLARATION Employers must then complete and submit a re-declaration of compliance. This is required even if, as will often be the case, there is no need to re-enrol any sta . The re-declaration of compliance confirms that an employer has checked whether they need to re-enrol any of their sta , even if none were re-enrolled. The deadline is five months from the third anniversary of the staging date (30 June 2020 in the above example), although the Pension Regulator recommends making the submission as soon as re-enrolment duties are complete. Key details entered when you made the original declaration of compliance should automatically be filled in on the re- declaration form. Don’t forget that outside of the re-enrolment process, you still have ongoing duties to monitor your sta ’s ages and salary to see if they need to be enrolled into your pension scheme. Remember pension re-enrolment Every three years employers must re-enrol any staff who have left their pension scheme. Small and micro employers now have to comply with these requirements for the first time. T PENSIONS The re-declaration of compliance confirms that an employer has checked whether they need to re-enrol any of their staff Credit: ADragan/Shutterstock.com