Understanding Auto Enrolment Communications to Employees
Keeping your workforce informed about where they stand with regards to their workplace pension is just one of your duties as an employer, but what do you actually need to do, and when?
This blog covers some of the basics of automatic enrolment pension communications. This information must be given to an employee by their employer in writing and before the end of a specified date. This date depends on when your staging date is, but as a general rule you should send your pension communications as soon as possible.
Pension Communications: what to know
The Pensions Regulator states that an employer must inform his or her workforce of the following:
- Information to eligible jobholders and the trustees, managers or provider of pension schemes as part of the automatic enrolment, re-enrolment and enrolment (opt-in) process
- Information to jobholders with a right to opt in and entitled workers with a right to join that explains both the right of a jobholder to opt in to an automatic enrolment scheme and the right of an entitled worker to join a pension scheme
- Information about postponement, where an employer chooses to use postponement
- Information about the transitional period for schemes with defined benefits, where an employer chooses to use the transitional period
This means that there are four occasions when an employer must give their workforce information regarding their pension. They must tell workers:
- Who they are automatically enrolling, or re-enrolling or who have asked to opt in about the automatic enrolment process
- Who they are not automatically enrolling that they can ask to become a member of a scheme at any time
- Who they have chosen to apply postponement that they have delayed automatic enrolment and that they can ask to become a member of a scheme at any time
- Who they have chosen to apply the transitional period for schemes with defined benefits, information about the deferral of automatic enrolment
Keeping a Record
Additionally, it’s important to keep a record of all pension communications to your workforce, for auditing purposes. Pension communications can be posted, emailed, or given by hand, but you must keep a record. Keeping a record simply backs your business up in the event of an audit by The Pensions Regulator, or if your business’s compliance with automatic enrolment is questioned.
We’ve only scratched the surface with the information above. If you’re unsure about what to cover, you can refer to The Pensions Regulator’s ‘Detailed guidance for employers’ page, or call IRIS on 0344 815 5700.
The IRIS AE Suite™
If everything we’ve covered sounds like a lot of work, why not look into the IRIS AE Suite™?
The IRIS AE Suite™ allows you to manage auto enrolment with what we call a ‘zero additional effort’ approach. The software is the industry’s most comprehensive auto enrolment software, and has been developed with the end user in mind. The software automatically makes the pension contribution calculations and creates an audit trail of calculations and communications. Additionally, the IRIS AE Suite™ generates letter templates for your business and prompts you when they are due to be sent, and keeps a record, meaning you can keep up with the communications side of the workplace pension reforms with zero additional effect.
Developed in conjunction with pension providers, The Pensions Regulator, and through customer feedback. The IRIS AE Suite is the most comprehensive piece of auto enrolment software available today.
Book a free, no-obligation product demonstration of the IRIS AE Suite™ today?