Employers will be able to re-enrol their staff into a workplace pension more simply following the launch of a new online resource, according to regulators.
They say that while the vast majority are carrying out re-enrolment successfully, some are failing to complete the task correctly – which could lead to a fine.
The new re-enrolment tool has been launched by The Pensions Regulator as thousands of small and micro employers reach their re-enrolment dates in the coming months.
Its director of automatic enrolment Darren Ryder says: “Re-enrolment gives staff who opted out of their workplace pension a fresh chance to start saving so it’s an important task.
“Automatic enrolment has led to millions of new savers and we want to ensure this success continues. Our online re-enrolment tool will help employers continue to meet their legal duties so that staff continue to have the opportunity to save.”
Re-enrolment must be carried out every three years. Firstly, the employer needs to choose the re-enrolment date as this can be up to three months before or three months after the three year anniversary.
Then they must check whether they have any staff to re-enrol and must write to staff and inform them they are being put back into scheme.
They must then complete and submit their re-declaration of compliance. Official figures reveal that more than 176,000 employers have completed their re-declaration of compliance showing TPR how they have met their re-enrolment duties.
The majority of employers will not have staff to re-enrol, however they must still complete their re-declaration of compliance to confirm they have checked whether they need to re-enrol any of their staff, even if none were.
It is a legal requirement and the TRP stresses that failure to both assess and re-enrol eligible staff and make a declaration could result in a fine.
The launch of the new re-enrolment tool comes at the same time as new TPR research shows business advisers continue to play a vital role in helping employers meet their automatic enrolment duties.
The survey revealed that more than 92 per cent of accountants, payroll administrators and book keepers and 62 per cent of IFAs advisers assist their small business clients with automatic enrolment.
To discuss any aspect of workplace pension provision and enrolment please contact me on 01772 430000.