Preparing for re-enrolment
During the re-enrolment process, many employers will look to carry out a general review of the scheme and to assess whether their current provider still meets the needs of the company and most importantly, its members. Some key areas that the employer might want to consider when preparing and planning for re-enrolment are:
During the three years since the launch of the scheme, payroll and payroll integrations have come along way. Questions should be asked around the software currently being used e.g. Does it do the job(s) it needs to? Does it work smoothly with the pension scheme in question? Are there better alternatives available?
Choosing a re-enrolment date
An employer must elect a re-enrolment date as they approach the third anniversary of their staging date. The date itself can fall three months either side of the staging date, giving employers a flexible six month window e.g. employers who staged on 1st May 2013 can choose to re-enrol on any day between 1st February and 31st August 2016.
Since the re-enrolment date can be chosen by the employer within a six-month window, it might be helpful to align this date with the start of a payroll period. Successive
Re-declaration to The Pensions Regulator
Following re-enrolment, it is the responsibility of all employers to submit a re-declaration of compliance within five months of their staging date anniversary.
Data cleansing and integrity
It is best practice during this re-enrolment exercise to carry out some data cleansing. Incorrect or inconsistent data can develop over time such as changes in an employee's address, email address and surname being some of the more common errors. This re-enrolment exercise is an ideal opportunity to review the data on record and carry out some basic checks to ensure the scheme data is as accurate and up to date as possible.
Equally as important is a general review of the scheme itself. Has the service that has been delivered by your pension provider been of a sufficient standard and quality over the past few years? Have the investments underpinning the scheme performed as well as hoped / in line with other pension providers? These are just two of the basic questions an employer should ask themselves.
Good scheme governance means that employers, in conjunction with their advisers, should really be reviewing their pension scheme periodically – i.e. every three years. A three year cycle also coincides with the three year period during which a member may elect to 'opt out' of their employers pension scheme.
Learn about how to switch from your pension provider over to Smart Pension.