Employers could face £10,000 a day fines for non-compliance on re-enrolment
Are you re-enrolling your eligible jobholders every three years?
As an employer who has a requirement to meet automatic enrolment legislation you are responsible for re-enrolling eligible jobholders every three years, otherwise you could face severe penalties. The level of fines The Pension Regulator can impose may be up to £10,000 per day, depending on the number of employees you have. You may therefore want to make sure that you understand your responsibilities.
Even if you have no one to re-enrol and have made no other changes to your company pension arrangements, you must complete a re-declaration of compliance every three years from your staging date via The Pensions Regulator’s website.
There are four steps to follow as an employer which are:
1. Select your re-enrolment date
The employer can select their re-enrolment date within a six-month enrolment window. The six-month enrolment window starts three months before and ends three months after the third anniversary of an employer’s automatic enrolment staging date.
2. Assess your workforce
On your re-enrolment date, you have to assess your employees and automatically re-enrol any eligible jobholders. This will include any employees that have opted out of the auto-enrolment scheme, ceased active membership of another qualifying workplace pension scheme or have stayed in the scheme but have chosen to reduce their contributions below the minimum level set by law.
3. Communicate with your employees
Within six weeks of your re-enrolment date inform the employees that you have re-enrolled in writing. The employer must do this to inform the employees that they have been put back into the workplace pension scheme.
4. Complete re-declaration of Compliance
Within five months after your selected re-enrolment date, you must complete your re-declaration of compliance online with The Pension Regulator. You must do this even if you have no employees being re-enrolled. If you do not re-enrol and re-declare then you could be faced with some hefty fines. The fines start at a fixed penalty of £400 and then a subsequent daily penalty for continued non-compliance which can range from £50 to £10,000, depending on the number of employees.
If you have any questions about re-enrolment, please get in touch on 01903 234094.