Full Employer Duties

• Nominate a point of contact with The Pensions Regulator

• Determine their Staging Date

• Decide whether to adopt a postponement period

• If postponement is to be available, over what time period and for whom

• Review existing pension arrangements – could they be used or adapted for auto enrolment ?

• Decide whether to adopt postponement for new employees after the original staging date

• Comply with postponement communications – issue advance communications on top of those required at the time of auto enrolment

• Identify the exact number of workers

• Classify workers into the relevant category (Eligible, Non-Eligible, Entitled and Other)

• Provide designated communications to all job-holders within allowed time limits

• Auto enrol Eligible employees into the scheme

• Deduct contributions from employees pay as required

• Pay contributions on behalf of Eligible employees

• Implement a process for opt-outs, including:

• Keeping auditable records

• Regular reports to The Pensions Regulator

• Making contribution repayments to employees if deductions have already been processed

• Ceasing future deductions

• The re-enrolment of Opted Out employees every 3 years

• Accept “Opt-In” applications from Non-Eligible employees

• Deducting contributions from employees pay as appropriate

• Pay contributions on behalf of Non-Eligible employees

• Accept applications to join from Entitled workers

• Deducting contributions from pay for Entitled workers opting in

• Decide which type of pension scheme to use (Defined Contribution contract-based, Defined Contribution, Occupational Pension Scheme, Defined Benefit, etc.)

• Select the earnings definition (for Defined Contribution) – this duty may be multiplied many times for schemes with multiple categories

• Choose a suitable pension provider / providers

• Decide on a default investment

• Complete, and provide, a Declaration of Compliance with The Pensions Regulator

• Provide information (whenever contributions are payable) to each pension provider

          • Re-assess workers at each payroll and repeat the above process

In relation to Employees

Employees need to be provided with information at the time of the employer’s staging date and as and when new employees become Eligible in the future. The information will be employee specific and may include the following:

• A statement confirming that the Employee has been, or will be, automatically enrolled into a pension scheme
• The date that the Employee will be enrolled
• The name, address, telephone number and electronic contact details of the pension scheme
• The value of contributions payable to the scheme by both the Employer and Employee
• Confirmation of/that:

– Contributions have been / will be deducted from qualifying earnings / pensionable pay

– How tax relief will be given (through the Relief at Source or Net Pay Arrangement)

• A statement outlining that:

– The Employee has the right to opt-out of the scheme during the ‘opt-out period’

– Indicates the start and the end dates of the opt-out period.

• The source from which the opt-out notice can be obtained.
• Confirmation that:

– Once opted-out, the employee will be considered, for all purposes, as not having become an active member of the scheme on that occasion

– Once a valid opt-out notice has been issued to the Employer, any contributions paid by the Employee will be refunded

– After the Employee has opted-out, they may opt back in

– After the opt-out period, the employee may cease paying contributions to the pension

– If they opt-out, the employee will be automatically re-enrolled into a qualifying scheme

• Details of where the Employee can obtain further information about pensions and saving for retirement

The specified information must be provided in writing, which can be by email. But, this should be provided, rather than the Employees being required to find it. It is not sufficient to rely on internet or intranet content, workplace posters or other such displays

If the specified information requires the communications of personal, or individual, data it should not be included in a generic communication. Where the specified information does not require personal data, e.g. an employee with the right to opt in, a generic communication, such as a joining pack may suffice

It is the Employers duty to provide the right information to the right individual at the right time. Someone acting on behalf of the Employer (such as SBS Auto Enrol) may provide the information, but it remains the Employer’s responsibility to ensure that it is provided on time and is both complete and correct

From April 2014, employers have 6 weeks (previously 4) to issue required communications