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Postpone new members of staff by 3 months to cover any probationary periods (where possible), deferring assessment of these employees. We then will send out the legal communication to the employee which will also clarify to the employee the option to opt-in to the pension scheme.
Postponement – A postponement is where you defer your legal duties to ‘assess your staff’ by up to 3 months. The employee can choose to opt-in during this period, which require you to enrol the member of staff into the pension scheme.
Once the postponement period has ended (or from the employee start date depending on the situation), we then ‘assess your staff’ and send out the legal communication required depending on what type of worker they are categorised as within the legal deadline.
Assessing your staff – We work out how much your member of staff earns and how old they are. This will identify what type of worker you employ and what action is required. If the employee meets the criteria for Auto Enrolment, they will need to be enrolled into the pension scheme. If they do not meet the criteria for Auto Enrolment, they will need to be informed they have a choice to join however will not be Automatically enrolled into the pension scheme. This is referred to as an ‘Opt-In’
All employees that meet the criteria for Auto Enrolment will be enrolled into the pension scheme towards the end of the pay period they became eligible (where possible). The employee will then receive a starter pack from the pension scheme provider with information of the pension scheme they are enrolled in, as well as explaining how they can leave the scheme if they wish to, also known as ‘Opting-Out’.
Opt-Out - All employees are required to be enrolled into a pension scheme if they meet the criteria for Auto Enrolment. If the employee does not wish to be in the pension scheme, they can choose to leave. If the employee leaves the pension scheme within one month of being enrolled, the employer and employee will be entitled to a full refund of all contributions paid. This will be paid back via the employer on the next available payslip. If the employee chooses to leave after one month, the employer and employee will not receive a refund. The amounts paid into the pension scheme will remain in the employees pension until they chose to withdraw it. This is referred to as a Cease Membership.
Once all above actions are completed we will submit your declaration of compliance to The Pensions Regulator confirming that all legal responsibilities have been met.
Declaration of Compliance – A document that is required to be completed within 5 months of your legal duties starting for Auto Enrolment to confirm to The Pensions Regulator you have upheld everything that is required.
Each pay period deductions will be made from the employees pay and we will pay this into the pension scheme with the employer contributions towards the end of each month. This will be taken by a direct debit from the pension scheme provider. If contributions cease, the direct debit will automatically stop taking contributions.
Payments to the Pension Scheme - If you have any employees in the pension scheme, they will receive deductions based on their earnings each pay period. These deductions will be required to be paid into the pension scheme within a date specified by the pension scheme provider and is a legal requirement to be upheld.
For more details on how pension payments are made, please refer to this page NEST Payments
After three years have passed from when your Auto Enrolment began (and every 3 years thereafter), we will action all duties required for your re-declaration and submit the information to The Pensions Regulator.
Re-Declaration - A document that is required to be completed every three years on the anniversary of the employers Auto Enrolment duties commencing. You are required to assess employees that have previously opted-out and re-enrol them if the employee still meets the criteria. Then complete a document that confirms the continued compliance with the Auto Enrolment legislation to The Pensions Regulator.