UK Payroll: Reasons You Should Be Aware Of Pension Re-Enrolment
Managing your organisational payroll can be difficult for businesses of any size, and it's vital to ensure you maintain all regulatory obligations to your workforce.
Complying with all aspects of auto-enrolment is one of the more recent payroll obligations and not all UK payroll administrators and business owners are fully aware of the existing legislation. For example, did you know that pension re-enrolment needs to take place for workers who have opted out of your scheme? If not, our brief guide to re-enrolment will soon get you up to speed.
About Pension Re-Enrolment In The UK
Pension re-enrolment for employees needs to take place every three years and employers have a six-month timeframe to action this procedure. Your re-enrolment date can be any time in the six months falling three months prior to the anniversary date that pension enrolment duties first began to up to three months following this anniversary. For example, if you first started auto-enrolling workers to your pension scheme on 1 July 2016, you could now opt to set your re-enrolment date between 1 May 2019 and 1 October 2019.
What You Need To Do
Once you've identified the appropriate re-enrolment date, you will need to complete a re-declaration of compliance form online at the Pensions Regulator website. This should be submitted no later than five months after your contractual staging date or pension start date anniversary – click here for more information.
Before your re-enrolment deadline, you need to identify all members of staff eligible for re-enrolment and each employee will have to be issued with an official letter confirming they are being re-enrolled to the scheme at least six weeks before your deadline. You can use the letter templates provided on the Pension Regulator's site for this task.
All relevant age and earnings criteria for employees will need to be considered. Eligible staff members may include workers that have opted out of your scheme and workers who have left the scheme by way of ceasing their active scheme membership. Workers already in the scheme who have opted to reduce their pension contributions to a level below the minimum auto-enrolment level will also need to be re-enrolled.
As can be seen from the above, pension re-enrolment is a complex payroll activity. You can find out about the high-quality outsourced payroll services provided by eSlip Payroll on our website or give us a call to discuss any confidential payroll admin issues that may be troubling you.