A quick guide to auto enrolment postponement
Employers can choose to postpone automatic enrolment for up to 3 months under certain circumstances. There is no need to let The Pensions Regulator know if you decide to postpone automatic enrolment but you must write to affected workers to let them know of the postponement period.
When can you use postponement?
There are only certain times when you can use postponement for automatic enrolment. These are:
- From your staging date
- From a workers first date of employment
- From the date a worker becomes eligible for automatic enrolment
If you are postponing automatic enrolment from your staging date you must ensure your pension scheme and method of assessing employees are in place as employees can still choose to opt in to your pension scheme.
Your staging date will remain the same and using postponement will not change the date by which you must submit your Declaration of Compliance (usually 5 months from your staging date).
Why might you use postponement?
Typical reasons why companies may use postponement include:
- Allowing new starters to pass their probationary period before joining your pension scheme
- Ensuring workers whose salary goes over the Lower Earnings Limit (LEL) for one month only are not automatically enrolled
- If there are temporary staff who will stop working for you within the 3 month period
What you must do to remain compliant
You should write to all staff within 6 weeks of the date they are postponed and the communications must meet The Pensions Regulator’s requirements. Once the postponement period finishes you must enrol eligible employees onto the pension scheme straight away.
You can learn more about auto enrolment legislation by attending an IRIS seminar. Dates are available both online and at locations throughout the UK.
The IRIS AE Suite allows you to assess employees and send legally compliant communications whether you are using postponement or not for auto enrolment.
For more information on IRIS auto enrolment solutions please call the team on 0344 815 5700.