As part of their most recent publication of statistics, The Pensions Regulator has revealed statistics concerning re-enrolment.
Re-enrolment occurs for an employer every three years, and the process is similar to the duties that employers carry out on their staging date, or deferral if they used postponement. The Pensions Regulator writes to employers six months before the anniversary of their staging date to remind them of the duties to re-enrol certain staff, then writing to them at key points before their re-declaration deadline. Under auto enrolment legislation, employers must re-enrol eligible employees into a workplace pension scheme if they were previously auto enrolled but chose to opt-out or ceased active membership.
"For the employers that have re-declared their compliance with AE, when comparing their workforce at the initial declaration against the workforce declared this time round, we see that in the three years since their initial declaration, the workforce of the employers that have re-declared to the end of March 2017 has increased on aggregate by 443,000."
By the end of March 2017, nearly 75% of the workforce that have re-declared are active members of a qualifying scheme. The Pensions Regulator says that this is unsurprising since larger employers were always more likely to be offering a workplace pension scheme to their staff. The number of eligible job holders at re-enrolment also decreased by 2,782,000 from their initial declarations, with employers re-declaring only 401,000 eligible job holders. Of the 10,938 employers in total that have re-declared their company, 3854 did not have any eligible job holders to re-enrol, but did have active members of their qualifying scheme. The report goes on to say how The Pensions Regulator is encouraged concerning re-enrolment.
"We are encouraged to see from our analysis of re-enrolment and re-declaration that AE is becoming business as usual for employers. As the medium employers have started, we've adapted our approach, learning lessons from our experience so far, to support these employers in meeting their re-enrolment and re-declaration duties on time."