Policy News Journal - 2017-18

Current until 5 April 2018 6 April 2018 – 5 April 2019

1% 2% 3%

1% 3% 5%

2% 5% 8%

6 April 2019 onwards

2. Monitor the age and earnings of all your staff You will need to monitor any changes in age and earnings of your staff so that you can identify if they become eligible for automatic enrolment. You’ll also need to check eligibility of any new members of staff on the day they start work. Should staff members become eligible (for example by turning 22, or by meeting the earnings thresholds), then you’re required to put them into a pension scheme and pay contributions to it. Your payroll software should be able to support you with this. 3. Process requests to opt in, join or leave the scheme, and keep and maintain accurate records. Opt in/join: If any of your staff write to you asking to join your workplace pension scheme, you must put them into it within a month of receiving their request. You will have to pay into the pension scheme unless they are aged 16-74 and earn less than £490 a month or £113 per week. Opt out: If any of your staff choose to leave your pension scheme within one month of being put into it, you need to stop taking money out of their pay and arrange a full refund of what has been paid to date. This must happen within one month of their request. Keeping records: You need to keep up-to-date records about your staff, including who you’ve enrolled and when, information about your pension scheme, and the contributions you are paying. You must keep these records for six years, except for requests to leave the pension scheme which must be kept for four years. 4. Re-enrolment Every three years, you’ll need to assess all your staff who either opted out of their workplace pension scheme or have ceased to become members, re-enrol them if they meet certain criteria, write to them to tell them what you’ve done – and then re-declare your compliance to The Pensions Regulator to let them know what you’ve done to meet your duties.

Further information on ongoing duties can be found on The Pensions Regulator’s website.

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Have you used the transitional period for DB schemes for auto enrolment? 25 August 2017

The transitional period for DB (defined benefit) schemes is ending on 30 September. The Pensions Regulator has published new guidance detailing what employers and clients will need to do to comply with the law.

Pension schemes with defined benefits are mainly used by large employers and some employers in the public sector, and are sometimes also known as 'final salary' or 'career average' schemes. The transitional period applies to staff who are entitled to join a workplace pension scheme with defined benefits. When the transitional period ends, workers that were covered by it must be assessed and put into the pension scheme with defined benefits if they need to be automatically enrolled.

Some employers may also have chosen to apply the transitional period to staff who were already in their pension scheme with defined benefits on their staging date.

If you are unsure whether you used the transitional period, you can check:  payroll software  staff records to see the letters written to staff telling them they were applying the transitional period to these workers  the acknowledgement of their declaration of compliance that TPR sent out to you.

If you or your clients have applied the transitional period, you will both need to take action to comply with the law. Read the new guidance on TPR’s website to find out what you will need to do, and when.

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The Chartered Institute of Payroll Professionals

Policy News Journal

cipp.org.uk

Page 402 of 516

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