Pension autoenrolment

Pension autoenrolment – Latest changes

Just a few months ago many of us could select if we wanted to have a pension and had to decide to opt in. Along the way, the government has actually presented a number of modifications to the way that auto-enrolment will work – the latest of which we will deal with here.

On 1st April 2015, the Department for Work and Pensions presented a variety of modifications to auto-enrolment. These were based upon an assessment that looked at how the plan was working and what wasn’t working. The objective of these modifications was to simplify the processes for employers and to present some exceptions to the process.

Pension Autoenrolment – The Exclusions

A worker can get an exemption from a scheme if they had decided out, irrespective of exactly what classification of worker they were. This assumes that they had opted out in the last 12 months.

Workers can also be excepted from pension autoenrolement if they have given notice or been sacked/made redundant or retired. Exceptions can likewise happen where a worker has actually already developed their pension cost savings to the threshold of their Lifetime Allowance.

This also applies to employees consequently re-employed if they were paid a lump amount at the end of their previous work by the very same company.

As an employer it is your obligation to ensure that employees that are excepted are provided the possibility to sign up to a pension when the time is appropriate – ie after the 12 month duration. A good pension auto enrolment summary can be found here.

Pension Autoenrolment – Recent simplifications

These changes to pension autoenrolement relate primarily to the details that as a company you are required to give to workers. Postponement notices, information about staff members and information relating to the right belong to a pension scheme have all been streamlined or been removed. Letter design templates and guidance provided to employers has been modified, making it easier to use.

It is anticipated that there will be some continuous modifications as more employers join the system and issues are raised. Consultations are continuing that will probably lead to more future changes.

For companies, things are currently a lot easier and much of the documentation burden has been minimized. Nevertheless, it hasn’t made the entire system easy and the majority of people will still require aid navigating exactly what to do.

If you need up to date information then get in contact requesting the latest autoenrolement recommendations