The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Common postponement questions
Can we use postponement more than once?
Yes, but only for staff who are assessed as not eligible to be automatically enrolled on the last day of the postponement period. Where a member of staff is eligible to be enrolled, you cannot postpone again and you must put them in a pension scheme (as explained above).
If a member of staff asks to join my pension during the postponement period, when do I start paying money into the pension?
If any member of staff writes asking to join a pension, you need to assess what they have earned and how old they are – in the pay period when you receive the notice that they want to join.
Further information
Automatic enrolment postponement
Automatic enrolment detailed guidance
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High compliance rates underpin success of automatic enrolment 28 July 2016
Two thirds of all employees are now active members of a pension scheme, compared with just 47% in 2012.
Automatic enrolment continues to bring more people into workplace pensions with pension saving again becoming the norm, according to The Pensions Regulator’s (TPR) Automatic Enrolment Commentary & Analysis 2016 .
TPR’s fourth annual report shows how automatic enrolment continues to help turn around the historic decline in pension provision. Two thirds of all employees are now active members of a pension scheme, compared with just 47% in 2012. Compliance rates amongst the first group of small and micro employers to undergo automatic enrolment are above 95% - demonstrating the effectiveness of TPR’s communications to employers including ‘nudge’ letters and emails, awareness-raising with trade associations and business networks, and a national advertising campaign in partnership with the Department for Work and Pensions.
Charles Counsell Executive Director for Automatic Enrolment said;
“Our key challenge in the past year has been to engage hundreds of thousands of small and micro employers and to help them prepare for automatic enrolment.
We needed to target these employers in new and innovative ways. The hard work and commitment of the many organisations who support employers – from trade bodies to employer representative bodies - has made a huge difference.
The compliance rates achieved have been consistently at the top of our expectations and the savings landscape has been transformed. But we know the job is not yet done and there are still significant challenges ahead.”
The majority of employers left to stage (57%) will be micro employers (employing 1-4 people), and of this sub-total, just over a third (34%) will employ just one person.
A redesigned website, emails and letters were part of a package of communications designed to make it as easy as possible for these employers to comply with the law.
In the report, TPR also updates its forecast of the numbers of employers due to stage in the next two years. There is little change in the number of employers forecast to have workers that they will need to place into a pension scheme. This remains up to 950,000. However, the overall number of employers expected to have duties has been revised down to between 1.32m and 1.46m. This includes employers who will not need to put workers into a pension scheme but will still have other duties, such as declaring compliance, or providing workers with information.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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