Smarter accounting

Pension re-enrolment

8 May 2019, Auto Enrolment, Charities, Companies, Employer, Sole Traders

Pension Re-Enrolment due every three years

All employers should now be aware of the their pension obligations.  Any employers who started employing workers before 1st October 2017 will have been issued with a staging date.  This is the date when they had to have a qualifying auto enrolment pension in place.  For new businesses / employers after 30th September 2017 pension duties start as soon as they employ someone for the first time.  Your staging date sets the date for your pension re-enrolment, due every three years.

Pension re-enrolment

How long do I have for Pension Re-Enrolment?

Pension re-enrolment will need to be completed roughly three years after your staging date.  As part of the process you will need to complete a re-declaration of compliance to the Pensions Regulator.  Failure to comply with these requirements could result in a fine.

The first date to work out is the 3 year anniversary of your staging date.  The pension re-enrolment window is from 3 months before your the 3 year anniversary until 3 months after.  This means that if your staging date was 1st June 2016:

  • 3 year anniversary falls on 1st June 2019
  • Earliest date for pension re-enrolment is 1st March 2019
  • Latest date for pension re-enrolment is 31st August 2019

To find your re-enrolment date use the the following link to the Pension Regulator Tool. You will need your PAYE reference and the Letter Code, which you will have been sent when your pension duties started.

What if all my staff opted out?

A member of staff who meets any of the following criteria does not need to be assessed:

  • is already in the pension scheme you use for automatic enrolment
  • is aged 21 or under
  • is at state pension age (SPA) or over
  • has not yet met the age and earnings criteria for automatic enrolment, or has been postponed.

You need to assess staff who have:

  • asked to leave (opted out of) your pension scheme
  • left your pension scheme after the end of the opt-out period
  • stayed in your pension scheme – but chosen to reduce the level of pension contributions to below the minimum level, and who meet the age and earnings criteria to be re-enrolled.

The point of pension re-enrolment is to assess staff who are not in the pension scheme and re-enrol them if required.

Pension contributions as a percentage of qualifying earnings

DateEmployer minimumEmployee minimum / Employer additionalTotal
Employer's staging date to 5 April 20181%1%2%
6 April 2016 to 5 April 20192%3%5%
6 April 2019 onwards3%5%8%

Minimum pension contributions increased from 1st April 2019.  The total of employer an employee contributions after any tax relief must now be be 8% of qualifying earnings.

 

Qualifying Earnings Thresholds for Auto-Enrolment 2019-20

2019-20Annual1 weekFortnight4 weeks1 month1 quarterBi-annual
Lower level of qualifying earnings£6,136£118£236£472£512£1,534£3,068
Earnings trigger for automatic enrolment£10,000£192£384£768£833£2,499£4,998
Upper level of qualifying earnings£50,000£962£1,9244£3,847£4,167£12,500£25,000

 

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