Setting-up pensions auto-enrolment for our clients’ employees was a right PITA three to four years ago. If we subcontracted this task to a specialist pensions administrator, we should check that our client is on top of their re-enrolment obligations.
All employees who opted out of the workplace pension must be re-enrolled in that pension after three years. The employer needs to write to each opted-out employee and inform them they will be automatically re-enrolled on the re-enrolment date. This date is set by the employer but is normally chosen as the third anniversary of the staging date for auto-enrolment.
Employees can immediately opt-out of the workplace pension again if they choose to do so. Individuals with very large pension pots may be advised to opt-out if they have taken steps to protected the level of their pension lifetime allowance, as making further pension contributions could break that protection.
Once the employer has re-enrolled all affected employees, it must submit an online declaration of compliance to The Pensions Regulator, within five months of the third anniversary of the original staging date.
Written by the Tax Advice Network