Re-enrolment and re-declaration – do you know your date?

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Under the Pensions Act 2008, every UK employer must provide a pension scheme for their employees and contribute towards it.

It is compulsory for all employers to automatically enrol their employees into a pension scheme, even if they have one employee.

Three years after auto-enrolment, employers will have to re-enrol employees back into the scheme, including those employees who opted out – this is called re-enrolment.

Employers must also complete a re-declaration of compliance which instructs The Pensions Regulator that they have met your duties.

It is a legal duty to undertake re-enrolment and re-declaration, and you will face a fine if these duties are not carried out.

“We are reminding clients about re-enrolment, which takes place three years after your auto-enrolment start date, and every three years thereafter,” said Zoe Horswill, payroll manager at Ellis & Co.

“You should receive correspondence from The Pensions Regulator when it is time to re-enrol, as well as your deadline date, which is usually three months after your auto-enrolment anniversary.

“However, we would advise clients to prepare beforehand and be aware of their own anniversary date.

“You must also complete a re-declaration of compliance form, which must be completed within five months of the third anniversary staging date,” she added.Screen Shot

Current pension contributions by an employer is 3%, with the 5% shortfall paid by the employee, as shown below.*

Date effective

Employer contribution

Employee contribution

Total minimum contribution

April 6, 2019 onwards

3%

5%

8%

 

For further information about any of the above, or any other payroll matter contact Zoe on 01244 343504.

*Figures from HMRC