Automatic Enrolment

An employer must automatically enroll any eligible employee, who is not already a member of a qualifying pension scheme with that employer, either from the automatic enrolment date, or from the end of the postponement period, if they chose postponement.

Employers must, on or after the automatic enrolment date, deduct any contributions payable by the eligible employee from any qualifying earnings or pensionable pay due for the eligible employee in each pay reference period.

There is a specific time limit for completing automatic enrolment. One month from the eligible employee’s automatic enrolment date is the ‘joining window’. Before the end of the joining window the employer must:

• Provide information about the eligible employee to the pension scheme.

• Provide enrolment information to the eligible employee.

• Make arrangements to achieve active membership for the eligible employee, effective from their automatic enrolment date.

A key feature of an automatic enrolment scheme is that the eligible employee is not required to provide information in order to either join or remain a member. It is the employer’s responsibility to work with the pension scheme trustees, managers, or pension scheme provider to achieve active membership for the eligible employee. It is also the employer’s responsibility to provide the required personal information about the eligible employee. Employers must complete this activity before the end of the joining window.