Covid-19 has brought in so many different challenges for employers. Although the pandemic brought about different questions with respect to auto-enrolment, the real question remains the same. How do the employers go about re-enrolment and re-declaration obligations? They certainly have big questions that they need answers to.
During every 3 years, all these employers are required to take care of a certain number of employers, proactively make them a part of the auto-enrolment pension scheme. They’re also required to tell the pension regulators that they’ve carried out the task smoothly. The entire process is called re-enrolment and re-declaration. Please note that the re-enrolment and re-declaration must be taken care of during every 3 years interval.
Let’s Dig Into Re-Enrolment
Here are some key things the employer needs to check under re-enrolment:
- The employer needs to have a certain number of employers to put back into the pension scheme and get done with auto re-enrollment.
- Inform/ write to the staff that has been auto re-enrolled.
A strong analysis part lies at the end of the employer. They need to look out for the staff and assess if they’ve got resources who’ve left the scheme and what number of resources have reduced their contributions. All your staff is automatically enrolled automatically if:
- Their age is between 22 or meets the criteria of the state pension age.
- Their annual income is over £10,000 a year. That breaks down to £833 a month, £192 a week.
If there’s a list of people that can be opted out, they’ll need to be re-enrolled. Make sure this list of people is put back into the pension scheme within 6 weeks of the re-enrolment date. If you manage to miss out on the date somehow, make sure that you’re done with it till the date your staff was assessed.
If you’ve got a list of employees who don’t want to be a member of the scheme, they can opt-out of it entirely. Availing this scheme, or not being a part of it is something up to them entirely. But once the course of the scheme begins, they’re auto enroled into it. The time period starts off from the date they’ve been enroled in them scheme until the date they’re supposed to be re-enroled. That’s the time period for them to opt-out of it. It is the duty of an employer, however, to make sure that all of its employees are part of the right scheme.
At some point and time when the staff has been re-enrolled, the employer must not forget to deduct the required amount from the pay and pay them over to the scheme with employer contribution as well.
Let’s Discuss Redeclaration
This one is the final step. The employee needs to make sure that the process of re-declaration of compliance is there. You’re supposed to do this regardless of the fact that how many employees have opted out of the pension scheme.
So what exactly is this re-declaration of compliance? The re-declaration of compliance is an online form that confirms to the pension regulators that the employer is done with all their legal obligations with respect to auto-re-enrolment. Make sure you’re done filing the re-declaration of compliance no later than 5 months from the date your duty started. This also applies to your staging date, as appropriate.