Pension re-enrolment is coming for all employers, but we have found most of you are unsure on which workers you should be re-enrolling.
In a nutshell, re-enrolment is the process of re-enrolling workers who have previously opted out of the pension scheme.
Employees you must assess:
- All employees that have left the pension scheme. This includes both those that have opted out within or outside of their opt out window.
- Employees that are in the pension scheme but have chosen to reduce their contributions to below the minimum level.
- If any of the above employee’s you are assessing meet the criteria for auto-enrolment they must be re-enrolled.
Employees not to assess:
- Workers already in the pension scheme.
- Employees aged 21 or under or at state pension age or over.
- Employees that have not met the criteria for auto-enrolment (earning less than 10,000 a year).
You may choose to re-enrol:
Although you must go through re-enrolment you can choose to exclude some workers from your assessment, these include;
- Employees that have opted out of the pension scheme or ceased membership within 12 months prior to re-enrolment.
- Workers that have given notice or have been given notice to end employment.
- Employees who have protected themselves from tax charges on their pension savings under HMRC protection.
- Employee’s that have received a winding up lump sum within 12 months before your re-enrolment date and have gone on to end their employment and then have been re-employed by you.