What is pension scheme re-enrolment and how do I do it?
If you employ a nanny or other staff who are eligible to receive a pension, you may be aware of the concept of re-enrolment. Re-enrolment is the process where an employer must put certain staff back into an automatic enrolment pension scheme, provided the member of staff is not already enrolled in one. This legal duty needs to be completed every three years.
It’s important to grasp the concept of re-enrolment as an employer, as failure to re-enrol eligible employees every three years can result in fines. This may sound all doom and gloom, but don’t worry! This blog post will lay out everything you need to do to re-enrol your employees in 4 simple steps.
Remember – if you’re a Nannytax customer who uses our additional auto-enrolment service, we’ll do all of this for you on the third anniversary of your automatic enrolment staging date. Phew!
Step one: Choose a re-enrolment date
You need to choose a day approximately three years after your initial staging date to be your re-enrolment date. There is 6 month a window around the exact 3-year anniversary that you can choose from – 3 months before, and 3 months after.
For example: If your staging date was 1st February 2016, the third anniversary of this date is 1st February 2019. Your re-enrolment window is 1st October 2018 – 30thMay 2018.
If you use our auto-enrolment service, we will set your re-enrolment day as the third anniversary of your staging date for you – you don’t have to do a thing.
Step two: Assess and re-enrol staff
Your staff may or may not be eligible for re-enrolment.
You need to assess staff who have:
- Chosen to leave your pension scheme
- Chosen to pay less than the legal minimum contributions
You can leave out any employee who, on your chosen re-enrolment date:
- Is already in your automatic enrolment pension scheme
- Is aged 21 and under
- Is at state pension age or over
- Has not yet met the age and earnings criteria for automatic enrolment
- Left your pension scheme less than 12 months ago
Our auto-enrolment service will assess your employees for you and re-enrol any eligible staff.
Step three: Write to staff you have re-enrolled
Once you’ve re-enrolled any eligible staff, you need to write to them letting them know that they’ve been put back into your pension scheme. This is a legal duty that must be carried out within 6 weeks on your re-enrolment date.
Step four: Complete your re-declaration of compliance
Even if you have no staff to re-enrol, you need to complete a re-declaration of compliance to show you have fulfilled your employer duties for re-enrolment. This needs to be done within five months of the third anniversary of your staging date. You can fill this in here – or let us take care of it for you.
Confused about re-enrolment? We don’t blame you! Here’s some more information about how we can help with re-enroling your nanny.
From The Nanny Tax Website (we highly recommend you register with Nanny Tax when employing a Nanny)