This year marks a decade since the introduction of automatic enrolment. Recent research by the Department for Work and Pensions (DWP) showed that over the last decade pension participation has increased from 56 per cent to 89 per cent.
Also, annual pensions saving has increased by around £41 billion since Automatic enrolment began.
But while most employers will be aware of their day-to-day obligations relating to enrolling new staff, and monitoring payments and contributions, they also need to be aware of their re-enrolment obligations.
These obligations mean that every three years; (from the start date of beginning to use the AE scheme), employers need to review staff, regarding those who have left the scheme, to see if they need to be readded. Likewise, it is important to look at those employees who have reduced their contributions.
Employers also need to reassess staff on factors such as age and earnings This applies to
Any staff who are:
- aged between 22 and up to State Pension Age
- and earn over £10,000 a year, or £833 a month, or £192 a week
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 21 December 2022.