WFM UK: Pensions Three Year Re-Enrollment – Fourth & HotSchedules Customer Success Portal

Overview

Automatic Enrolment legislation states that employers must re-assess all eligible jobholders who have previously opted out/ceased membership of a qualifying pension scheme and re-enrol them into it every three years.

This article explains how to configure the system specifically to assess workers for three-year re-enrolment purposes.

For all Pensions-related articles, please see WFM UK - Pensions: Article Contents Page.

Choosing a Re-enrolment Date

Each employer has a six-month re-enrolment window starting three months before the third anniversary of their original staging date or duties start date and ending three months after that anniversary.

Staging Date - this is the historic rollout start point for Auto Enrolment

Duties Start Date - when your responsibilities actually begin (this is now the standard term)

Fig.1 - 6-month re-enrolment window

For example, if an employer has a staging date of 1st October 2019, their re-enrolment window will be: 1st July 2022 – 1st January 2023

Setting a Re-Enrolment Date in the Pensions Module

Please note – Do not enter the re-enrolment date into the portal until you are in the correct pay reference period.

Once the re-enrolment date has been decided, this date will need to be set within the Pension module.

Log in to the Pension module
Go to Administration > Company Setup and select a Company
Then select Pension Assessment Dates

Fig.2 - Pension Assessment Dates button

The Pension Assessment Dates screen shows the original staging date and the six-month re-enrolment window.

Enter the re-enrolment date in the Cyclical Automatic Enrolment Date field
Save

Fig.3 - Pension Assessment Date

The Re-enrolment date is then entered into the company’s record.

Please note: The re-enrolment date should not be entered into the system before the correct pay reference period. This date can be checked by reviewing the pension diary: Pension > Administration > Pension Schemes > select scheme > Page Links > Pension Diary

Postponement Periods

The three-year re-enrolment legislation states that postponement periods should not be used for the re-assessment and re-enrolment of previously eligible employees.

The system has been developed so that re-enrolled employees will not be postponed. Re-enrolled employees will have contributions taken in their next available payday.

Identifying Workers for Re-assessment

Legislation states that any worker who has opted out or ceased membership, within twelve months before a re-enrolment date does not have to be re-assessed.

The employer has the choice of whether to include them or not.

Setting Up the System to Identify Workers

For the system to know whether or not to include workers who have opted out or ceased membership within a twelve-month period before the re-enrolment date, the correct settings must be flagged within the pension scheme.

Go to Pension > Administration > Pension Scheme > select Pension Scheme
Use the yellow drop-down arrow and select Edit Pension Scheme

Fig.4 - Yellow drop-down arrow > Edit Pension Scheme

Tick the box against Include Pension Scheme Leavers Within Last 12 Months
Scroll down and Save

If any Worker Groups are set up, the same box needs to be ticked in the Worker Group record.

Fig.5 - Pension Scheme Details & the Edit button

Workers not to be Re-assessed

There is a category of workers that can be selected not to be re-assessed under re-enrolment Legislation.

Those workers are:

Those who have primary, enhanced or fixed protection of their pension. It is an employee's responsibility to let their employer know if they fall within this category
Workers who hold the office of Director within the company. The Director must be formally appointed under the Companies Act 2006

Updating ‘Protected’ Workers or Directors

To update an employee's record so they are no longer included in the re-assessment process, their personal record within the pension module will need to be updated.

Go to Pension > Employees > Employee List > search for and select employee
Once in the employee record, go to Employee Pension Info > Pension Eligibility
Remove the tick from the Assess Worker for Pension Scheme box and then Save

Fig. 6 - Assess Worker for Pension Scheme setting

Amending Letters

Fourth has made it simple to create letters for employees who have re-enrolled. There is no additional re-enrolment trigger within the functionality.

Instead, re-enrolment notifications will use the existing enrolment trigger:

1 – EJ – Automatically Enrolled (NEST: 1/TPR: 1,)

On the existing template for Enrolment, add the following mail merge fields:

<?EnrolmentStatus?> - this will populate with ‘Auto Enrolled’ or Re-Enrolled’ depending on the enrolment status.

<?DeferralDate?> - the date the employee has been enrolled (this may have previously been deferral date – this should be updated to this field).

An example of how to include these fields within the letter is:

You have been <?EnrolmentStatus?> into the pension scheme on <?DeferralDate?>.

Calculating Assessment Dates

To run the re-enrolment assessment, the Pay Date that holds the Relevant Pay Reference Period will need to be calculated.

To do this, look at the Pension Diary.

Go to Pension > Administration > Pension Scheme > select a Scheme > Page Links > Pension Diary

Fig. 7 - Pension Diary link

This will display the Pension Diary.

Fig. 8 - Pension Diary

The relevant pay reference period is the pay reference period that includes the re-enrolment date. Ensure the re-assessment is run before closing the payroll for the pay date associated with the relevant pay reference period.

Below are two examples. The first is a standard Monthly payroll, the second is a payroll in arrears:

Standard Monthly Payroll

Fig. 9 - Standard Monthly payroll

Re-enrolment Date is 01/10/2022
Pay reference period that includes re-enrolment date is 01/10/2022 – 31/10/2022
The Pay Date associated with this pay reference period is 31/10/2022
The relevant pay reference period is 01/10/2022 – 31/10/2022
The pay date to work to for running the assessment is 31/10/2022
The re-assessment will need to be run before the payroll for pay date 31/10/2022 is closed

Payroll in Arrears

Fig. 10 - Payroll in arrears

Re-enrolment date is 01/10/2022
Pay Reference Period that includes re-enrolment date is 26/09/2022 - 02/10/2022
The Pay Date associated with this pay reference period is 30/09/2022
The relevant pay reference period is 26/09/2022 - 02/10/2022
The pay date to work to for running the assessment is 30/09/2022
The re-assessment will need to be run before the payroll for pay date 30/09/2022 is closed

Each pay basis may have different pay dates, and the assessment must be run for each pay basis.

It is essential that the assessment is run in line with what has been calculated and that the re-assessment pay dates are calculated for each pay run.

Running the Re-enrolment Assessment

Now everything has been set up correctly, the three-year reassessment can be run.

Follow this checklist of actions to successfully re-assess employees.

Wait until the payroll has been populated with payroll information
Run a payroll preview (basic) and export to Excel – save down to a local drive
Set the re-assessment date
Set whether employees who have left the scheme in the last twelve months will be re-assessed
Run the re-assessment

The re-enrolment process can then start.

Go to Pension > Pension Process > Assess Workers at Re-Enrolment Dates
Select the company and Pay Basis to be reassessed

The system will now assess all employees who have previously left a pension scheme dependant on the criteria set. A message will appear to confirm the successful completion of this process.

Once the re-assessment process is complete:

Mark any protected workers or directors so as not to re-enrol them
Run a payroll preview (basic) and export to Excel – save in a local drive
Compare pension contributions between the pre-assessment preview and post-assessment preview to identify those workers who have been re-enrolled
Update letters and re-upload to document management

The assessment for that pay run will then be complete.

Follow this process for each pay run, according to the dates that have been calculated in the previous section.

Running the Payroll

The payroll can now be run as normal. Employees will be re-enrolled into the pension scheme on completion of payroll.

Please note: If a pay date is before a re-enrolment date, then deductions will not be taken, as contribution deductions are not allowed to be taken before the agreed date. Instead, pro-rata'd contributions will be taken in the next payroll.

Next Steps

Once payroll has closed, the following should be completed:

Send out letters in line with usual timelines
Declare the re-enrolment to The Pensions Regulator (TPR)

The Pensions Regulator Re-enrolment Declaration

Once the re-assessment has been carried out and the payrolls that re-enrol employees are completed, a declaration of compliance will need to be sent to The Pensions Regulator.

Within the Pension module, there is a report that can be run which will provide the information required for the declaration.

Go to Pension > Reports > Exports > Re-registration Export

Fig. 11 – Export Criteria

Select the pension scheme to be reported against > Run Report

Fig. 12 – Export Criteria

Please note: Re-assessment of employees is an employer’s responsibility. Fourth’s Pension module has been enhanced to allow users to do this quickly and easily.