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Automatic re-enrolment with Carval Payroll Software

Many of Carval's clients had auto-enrolment staging dates in 2013 and will now therefore be reaching the third anniversary of this process. This is a key time for them, as any employees that initially "opted out" of enrolment will now need to be reassessed.

Automatic-enrolment of employees into pension schemes under workplace pensions reforms started back in October 2012. Initially the legislation only applied to the very largest firms, but was gradually rolled out to medium and then small businesses. This means that in the very near future it is possible that a review process will be carried out by many companies using Carval's payroll software with regards to reassessing opted out employees and giving them the opportunity to join the pension scheme. So here follows a brief description of how the system works.

There are two types of automatic re-enrolment – cyclical and immediate.    

Cyclical automatic re-enrolment

With cyclical automatic re-enrolment an employer must put their eligible jobholders who are no longer in pension saving (because they chose to opt out or cease membership after the employer’s staging date) back into an automatic enrolment scheme on a three-yearly cycle, and is in essence a repeat of the process the employer carried out during the original staging process.

The cyclical re-enrolment date is 3 years from the the employee’s assessment date which is the company staging date, for employees who were at the company at the time of staging, this is on the Pay Group Maintenance | Options – Workplace Pensions ‘Staging Date’,  NOT from when an employee has been opted out.  However, for new starters, or employees turning 16 or 22, it is their join date, or their 16th birthday or 22nd birthday, respectively.

If an employee was opted out , their auto enrolment date is moved on 3 years from the pay group’s staging date. If this date is in the past, then another 3 years is added, until a future date is reached.

For example: if a company’s staging date is 01/04/2015, and employee opts out or ceases, the next enrolment date is set to 01/05/2018. The payroll calculation  will then continue to ignore this person until the period falls on or after 01/04/2018, at which point the employee is reassessed, If the employee opts out again, the next enrolment date is set to 01/04/2021. And so on.

Carval will use the ‘Auto-enrol date’ on the  Employees Workplace pension screen to drive the re-enrolment process. This field is populated with the ‘enrol date’  that an employee has been enrolled.  This changes to the re-enrolment date (3 years on from staging date set in pay group maintenance) when an employee has been opted out via the opt out button.

You will need to ensure that the ‘Auto-enrol date’ is populated if the employee was not opted out correctly as this can affect the assessment.

Immediate automatic re-enrolment 

With immediate automatic re-enrolment an employer must put a jobholder (whose active membership of a qualifying scheme has ceased even though it was not their choice) back into an automatic enrolment scheme immediately when certain conditions are met. Whether it is cyclical or immediate, the process of automatic reenrolment is the same as automatic enrolment. 

The payroll log file and process auto enrolment screen will be populated with the enrolment notifications for each employee assessed by the re-enrolment process.

You may need to review any communications that are sent to employees and update as required. Usually these are dependent on the pension provider being used and you should consult with them if you are unsure.


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