Ready to re-enrol?
Three years have passed since many businesses’ staging dates for auto enrolment, meaning they’ll soon need to re-enrol certain employees into a pension scheme. But how can they ensure they’re ready?
IN 2012, THE EARLIEST adopters were required to automatically enrol certain staff into a pension scheme. Now, in 2017, we are coming full circle. The staging process dates have been reached and a large proportion of companies in the country have completed the process of inducting employees into auto enrolment pension schemes. In fact, we are now at a point where many employers are approaching the three-year anniversary of their original staging date, meaning that over the coming
months and years planning and executing re-enrolment projects is firmly on the radar of payroll departments throughout the country. In essence, re-enrolment is a process where companies must re-enrol certain staff into a pension scheme that can be used for auto enrolment, if they’re not already active members of one. Due to the nature of re-enrolment, this will be a first-time project in many payroll departments but it will come with definite timelines and penalties for non-compliance.
Your re-enrolment responsibilities Re-enrolment should be viewed in the same way as any other project your department undertakes. It will require you to make multiple decisions and different approaches can be taken to implement it based on your in-house resources, technology and service providers. At a macro level, re-enrolment can be divided into four work streams. Firstly, businesses need to identify when to engage in the re-enrolment process. Secondly, they need to identify the staff they need to enrol. Following this, companies need to complete the re-enrolment process, before finally declaring compliance with The Pension Regulator. In light of this, to successfully implement re-enrolment, it’s worth using project-management techniques like scheduling, resourcing and communication plans. Setting the date The first step in the plan is selecting the date of re-enrolment. You can choose any time from a maximum of three months before to three months after the third anniversary of your initial enrolment date. For example, if your staging date was June 1 2015, your six-month window would run from March 1 2018 to August 31 2018. When selecting your re-enrolment date, it is important to note that whatever date you choose this time will become the centre date of your six-month window next time around. Determining whom to re-enrol Going deeper into the preparation for re-enrolment, the next step is determining which employees need to be enrolled. Broadly speaking 3