Every three years you must put certain staff who have left your pension scheme back into it. This is called re-enrolment, sometimes referred to as ‘automatic re-enrolment’ or ‘cyclical re-enrolment’.
Whether you have staff to put back into your scheme or not, you must complete a re-declaration of compliance to tell us how you have met your duties. Remember, re-enrolment and re-declaration are your legal duties and if you don't act you could be fined.
An employer must choose a re-enrolment date that falls in the three months either side of the third anniversary of their staging date or duties start date (the ‘re-enrolment window’). The date can be any day of the month that the employer chooses, so for employers whose duties started on 1 October 2015, they could choose to re-enrol on any day between 1 July and 31 December 2018. This gives them a six-month window in which they can choose a re-enrolment date, but they must have the same re-enrolment date for all staff they have to re-enrol.
You will need to enrol workers who’ve previously:
- stopped making contributions or;
- opted out, without having opted back into the scheme.
There are a few exceptions to workers who would ‘normally’ be enrolled as they are eligible jobholders, these are:
- any employee who cancelled active membership (opted out) within 12 months prior to the chosen re-enrolment date.
- have given in their notice to end their employment with you.
- have been given notice of dismissal by you.
- you know they have protection from the lifetime allowance.
Once you have worked out which staff must be re-enrolled, you must now put them back into a pension scheme within six weeks of your re-enrolment date.
It is a legal duty to write to each member of staff you have put back into your pension scheme and this must be completed within 6 weeks after your re-enrolment date. However, you do not have to write to staff that are not being put back into your pension scheme.
The final part, and is a must regardless of whether you had anyone to enrol or not, is to complete your re-declaration of compliance within 5 months of the third anniversary of your staging date or duties start date.
Sounds time consuming? Complicated? FSB Workplace Pensions offer a Triennial review service to take away this administrative burden which is available for a one-off fee of £99 +vat*.
FSB Workplace Pensions now also does Payroll. Our new service will take complete control of payroll, from data collection to calculation, all the way through to distribution of payslips. All you need to do is supply us with the information using our state-of-the-art web portal and we will do the rest – all for £5 per payslip.
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The Triennial review service is included in our Payroll Service at no extra cost.
*For up to 10 employees.