Clients’ duties under auto-enrolment are on-going. As part of those duties, every three years, employers must undertake a re-enrolment and re-declaration exercise.
On each third anniversary of their staging date or duties start date (as appropriate depending on when they came within auto-enrolment), employers must re-assess staff who have left the pension scheme (or who opted out). Staff who are aged 22 up to state pension age and who have earnings before tax of £10,000 a year (£833 per month; £192 per week) must be automatically re-enrolled. The employer must still re-enrol an employee even if the employer knows that the employee does not want to be a member of the pension scheme – it is for the employee to then opt out if they wish to. As part of their re-enrolment duties, the employer must also write to all employees who have been re-enrolled.
The employer must also complete a re-declaration of compliance every three years, confirming that they have met their obligations under auto-enrolment. This must be done within five months of the third anniversary of the staging date or duties start date. The re-declaration of compliance can be completed online on the pension regulator’s website.
It is important that clients understand their duties under auto-enrolment as penalties for non-compliance can be high.