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Our latest Blogs about Auto-Enrolment


I don’t think any of my staff are eligible for Auto-Enrolment, do I need to do anything?

If you have one or more employees, you will need to assess their age and earnings every payroll run from your staging date (and keep a record of this) and categorise them as Eligible Jobholders, Non-Eligible Jobholders or Entitled Workers.

 

  • An Eligible Jobholder is aged between 22 and State Pension Age, earning over £10,000 a year.  They must be automatically enrolled.

 

  • A Non- Eligible Jobholder is aged between 16 and 22, or State Pension Age and 75, OR, a Non-Eligible Jobholder may earn between £5,824 and £10,000 a year.  They can opt-in to your workplace pension scheme.

 

  • An Entitled Worker earns below £5,824 a year.  They won’t be enrolled and they can’t opt into your workplace pension, but they can pay their own contributions into a scheme.

 

  • You do not have any pension duties for employees outside of the 16-75 age range

 

 

If you don’t have any eligible jobholders, you may still have to jump through some auto-enrolment hoops to keep The Pensions Regulator happy…

If you only employ non-eligible jobholders and/or entitled workers, you will still need to send statutory letters to your employees at your staging date to let them know how auto-enrolment affects them and what action they can and can’t take. This is a legal requirement and you need to keep a formal record of the letters you send and when you sent them.   Non-eligible jobholders have the right to opt-in to your scheme, even if you haven’t set one up yet, and you will need to start paying contributions for them.  If they do opt-in, you’ll have to move pretty quickly to set up a scheme within six weeks!   

 

 If you’re sure that your non-eligible jobholders don’t want to opt-in to your pension scheme, then there is no requirement for an employer to have a scheme in place (but you mustn’t discourage them from opting in).  Having said that, it’s a good idea to set up a pension scheme if you suspect that a non-eligible jobholder is likely to opt-in, or if they might become an eligible jobholder in the near future, so that you don’t have to rush into it later.  

 

Don’t forget your Declaration!

All employers will need to declare their compliance with The Pensions Regulator within five months of their staging date, whether or not you’ve had to set up a scheme.  Don’t forget to do this, otherwise you’ll be liable to a £400 fine from The Pensions Regulator.

 

The declaration can’t be completed prior to your staging date, and it must be completed online via The Pensions Regulator’s website:-

 

 http://www.thepensionsregulator.gov.uk/employers/automatic-enrolment-registration.aspx

 
If you think you might need to set up a scheme, or would like to talk through your circumstances, please give us a call on 0800 160 1233.  We’ve got lots of useful information and guidance on our website if you need it: http://www.aefasttrack.com/

 


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