Auto-enrolment duties for employers

Where do your pension duties begin?

Automatic enrolment is an ongoing employment duty, not just a pension scheme set-up exercise. Establish when your duties begin, identify the people you engage and decide who manages assessment, communications, scheme administration and payments. Small employers should not assume they are outside the rules.

The workforce assessment is broader than checking who appears on a conventional employee list. Some people described as contractors may be workers for pension purposes. Review unusual arrangements, director-only businesses and staffing changes using The Pensions Regulator's guidance rather than relying solely on job titles.

Agree a written division of tasks with payroll and pension providers. Specify who approves contributions, sends notices, checks rejected files and completes declarations. Delegating a task does not remove the employer's legal responsibility, so keep an employer-owned record of what has been completed.

When should you assess staff?

Assess workers using the applicable age and earnings criteria. Monitor changes each pay period, including new starters, birthdays, variable hours and earnings changes. Use current regulator guidance rather than leaving an old threshold fixed in a spreadsheet.

Different categories produce different duties. Eligible jobholders generally require automatic enrolment. Other jobholders can opt in and receive employer contributions. Entitled workers can ask to join a pension scheme, although an employer contribution is not generally required under that joining right.

For example, a worker whose normal earnings fall below the enrolment trigger may receive overtime that changes their assessment for that period. Payroll should identify the event and prompt action, rather than wait for an annual review.

Postponement can defer assessment where permitted, but requires the correct notice and follow-up. It is not a blanket exemption for probationary staff, and relevant worker rights continue during postponement.

What must staff be told?

Choose a scheme suitable for automatic enrolment and confirm it accepts your workforce and payroll arrangements. If you already have a scheme, ask the provider whether it meets the requirements; an existing pension is not automatically suitable.

Give workers the statutory information appropriate to their circumstances. Explain enrolment, contributions and rights to opt in, join or opt out. A general announcement does not replace required individual information. Confirm who issues each notice and how delivery evidence is retained.

Complete membership and deductions from the correct effective date. Keep evidence that notices were issued and the provider accepted the worker. A successful calculation does not prove membership was established.

Do not encourage staff to opt out or arrange an advance opt-out before enrolment. Follow the scheme's valid process, check refund requirements and distinguish a statutory opt-out from leaving membership later.

How should you check contributions?

Confirm the pensionable earnings definition, rates and tax-relief method before configuring payroll. Statutory minimum requirements and scheme terms both matter. A scheme may use qualifying earnings or another permitted basis, so applying a percentage to all gross pay without checking can be wrong.

Use current official guidance for contribution figures, qualifying earnings and payment requirements. Check how bonuses, overtime, statutory payments and other pay elements are treated under your arrangement. A change of pension provider or earnings basis should trigger a settings review.

Reconcile deductions with the upload and provider receipt. A file can be accepted while the direct debit fails, or a payment can arrive without correct member allocation. Investigate both data and cash rather than assuming one successful stage completes the duty.

If payroll deducts contributions for twelve members but the provider accepts eleven records, identify the rejected member, correct the record and check that the full contribution reaches the right account. Retain the exception and its resolution with that pay period.

How do declarations and re-enrolment work?

Complete the declaration of compliance with The Pensions Regulator, including where no staff needed automatic enrolment. Scheme registration or a first payment does not complete this separate duty. Use the current timetable and retain submission confirmation.

Re-enrolment normally operates on a three-year cycle. Assess relevant staff who previously left or reduced contributions, apply the rules and permitted exceptions, and put those who qualify back into the scheme. Communicate the outcome and complete re-declaration.

Re-declaration remains necessary even if nobody needs to be re-enrolled. Keep an employer-owned diary so the process does not depend on a reminder reaching one person. Review access when your internal contact or provider changes.

• Review assessments, notices and exceptions each payroll.
• Reconcile contributions and investigate failed payments.
• Retain required records securely and restrict access.
• Diary declaration, re-enrolment and provider-change checks.