Auto-Enrolment – Again!

By October 22, 2014Uncategorized

There is another large group of our clients that will be staging over the next few months and there is still some confusion over the ‘type’ of worker. There are three categories a worker can be put into, and then uncategorised for anybody that does not fall into these categories.

 

Eligible – This worker should be automatically enrolled. They will be working in the UK, aged 22 – State Pension Age (SPA) and earning over £10000

Non-Eligible – This worker has the right to opt in, but this is not automatic. They will be earning over £10000 but aged 16 – 21 or SPA – 74, or aged 16 – 74 and earning £5772 – £10000.

Entitled – The worker has a right to join a scheme. They work in the UK, are aged 16 – 74 and earn less that £5772.

(correct as of 22.10.14)

 

For non-eligible workers that want to join the scheme, it is useful to have the information at the same time as the payroll data is submitted. A worker cannot opt out until they have been enrolled.

 

The postponement system is not in place to delay the set-up of the scheme or the assessment. It is more in place to help with temporary or short term staff. Find out more about postponement here. This is an area where people seem to get themselves into trouble, so please make sure you fully understand what your advisor, and Pension Company, have told you.

 

We have new forms now for companies staging in the next few months. Unfortunately the form has become more complex as we really need to pin down exactly what is happening. Auto-Enrolment is not simple, companies will need professional advice and the payroll is just one part of that process.