Re-Enrolment into Workplace Pension Scheme

Pension re enrolment

Re-enrolment into workplace pension scheme must be completed by employers every 3 years. Even if the staff member has opted out they must be re-enrolled.

Compliance with the Pension Regulator

Since the introduction of the workplace pension scheme, all staff had been given the opportunity to opt out of auto enrolment.

This is still the case, however it is important to note. All employers must re-enrol all staff back into a workplace pension scheme every 3 years by law.

Process to Re-Enrol Staff in the Workplace Pension Scheme

This is a two stage process:

  • First the employer must put all eligible staff back into the scheme.
  • Second, the employer must complete and submit an online declaration of compliance. This will then be submitted to the pension regulator. Most payroll software can do this stage.

All staff members are then able to opt-out again if they wish.

HMRC Guidelines on Re-Enrolment into Workplace Pension Scheme

HMRC have stated that all employers must ensure they leave enough time to carry out the process. Automatic Enrolment is a continuous responsibility and therefore should be treat as such.

HMRC have reminders in the Employer Bulletin 78 and Agent update 72.

Re-Enrolment into Workplace Pension Scheme and Potential Risks

Employee Risks:

Re-Enrolment is another potential risk area for some employees. This is true for those with one of the lifetime allowance protections. This would be where the protection is conditional and no further contributions are being made.

This group need to remain observant when they have automatically been re-enrolled. They must ensure they opt out to retain their protection.

Employer Risks:

Employers who don’t complete the re-enrolment into workplace pension scheme for their eligible staff can face severe penalties. In the most serious cases it is a criminal offence with a maximum punishment of up to 2 years in prison.

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