Employers: three years after your staging date and every three years after that, you have new obligations under Workplace Pension rules.
Your 3-year checklist:
- All eligible members of your staff who opted out at your staging date must be re-enrolled into the scheme.
- You must communicate with those affected to let them know their options within 6 weeks of the re-enrolment date.
- They do have the opportunity to opt-out again
- You must assess your scheme to make sure it’s still compliant. If you were one of the early schemes to be set up under auto enrolment, some of the charging structures may no longer be allowed under the rules.
- It is no longer permitted for your scheme to pay for any services from your financial adviser via commission on the scheme.
- There is now a limit on the fee the fund provider can charge to manage the scheme’s default investment fund(s). This charge cap has been set at 0.75%. Any schemes set up before this change in the rules may no longer be compliant if they involve a default investment fund that carries a higher charge.
- You must submit a new declaration to the Pensions Regulator stating that you have met the requirements of the legislation as it stands now. This must be done within 5 months of your three-year anniversary of staging.
Re-Enrolment is a great time to take a step back and assess whether your current scheme is still fit for purpose. Talk to us about carrying out an independent review of your existing arrangements to ensure that you are both meeting the rules and getting value for money.
Contact us for a free initial meeting to discuss your re-enrolment challenges.