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Pegasus Blog

Communicating auto enrolment to your employees

DATE

August 15, 2013

In our auto enrolment series, we’ve covered the basics of auto enrolment, staging dates and the assessment of your employees. In this post we’ll look at providing a qualifying pension scheme for your employees and the benefits of using software to conduct your auto enrolment duties. We’ll also cover communicating the changes and the important task of auto enrolling all your eligible jobholders at your staging date.

Benefits of using software to conduct your auto enrolment duties

Using payroll software to automate the assessment of your employees will save time, improve accuracy, reduce risk and most importantly, ensure that records are set up and maintained. Even for small employers, it’s time consuming to maintain records on an on-going basis.

How can our payroll solution help? Opera 3 enables employers to auto enrol employees and maintain auto enrolment records at an individual employee level. In addition, auto enrol options are made available when new employees are created, allowing for immediate processing of new starters.

When employees are auto enrolled it’s necessary for employers to provide the pensions provider with details of those employees. Sound daunting? This is where Opera 3 payroll can help. Opera 3 payroll caters for NEST Pensions (National Employment Savings Trust), allowing you to exchange pension-related information electronically from your payroll to NEST. NEST provides low cost and easy to use qualifying pension schemes, available to any employer to use to meet their auto enrolment duties.

Communicating the changes to your employees

As an employer, it’s your duty to explain to all your employees what auto enrolment is and how it will affect them, with the exception of employees under 16 or over 75. There’s specific information you must relay to each category of workers:

Eligible jobholders: You must tell all eligible jobholders what auto enrolment means for them, when they’re being enrolled and details of the pension scheme they’re being enrolled into, along with information about opting out.

Non-eligible jobholders: You must give all your non-eligible jobholders information about their right to opt in to the pension scheme.

Entitled workers: You must tell entitled workers about their right to join a pension scheme but that you, as an employer, don’t need to contribute towards it.All information must be communicated to your employees in writing, such as a letter, email or a joining pack.

Enrolling your employees at your staging date

To automatically enrol your eligible jobholders at your staging date, you must send your pension provider information about each of your eligible jobholders. You must provide their name, gender, date of birth, home address, auto enrolment date and national insurance number (NINO).

Once you’ve automatically enrolled your employees, what’s next? Active membership in the qualifying pension scheme starts from your auto enrolment staging date. As an employer, you’ll need to make regular employee and employer payments into the scheme. It will also be your responsibility to keep records and manage employee opt-outs.

Registering with the Pensions Regulator

Last but by no means least; you must register with the Pensions Regulator within four months of your staging date. To register, you’ll need to go to the Government Gateway.

Next week, we’ll be concluding our auto enrolment blog series with an auto enrolment guide for FD’s.

Contact us

Tel: 0800 919 704