03 December 2013

Technical changes to auto enrolment

The government recently announced technical changes to the auto enrolment legislation. The changes aim to simplify the AE process as the legislation rolls out to SMEs in 2014.

A number of changes were introduced on 1 November 2013 with the change to joining windows coming in from 1 April 2014.

What are the changes?

Effective 1 November 2013

  • Alternative definitions of pay reference periods for both assessing jobholder status and determining whether a scheme is a qualifying scheme. For example, moving to tax months
  • The extended deadline for passing worker contributions to a pension scheme applies to all new joiners (including entitled workers and contractually enrolled)

Effective 1 April 2014

  • The automatic enrolment joining window is extended from one month to six weeks
  • Deadlines for postponement notices and providing information to individuals on their opt in and joining rights are extended to six weeks

Read more about the technical changes to auto enrolment.

Staging in the coming months?

What the changes can mean for you if you're staging in the coming months:

  • Would your clients like to take eligibility assessment off your payroll critical path?
  • Would your clients like more time to be able to issue auto enrolment communications?
  • Would your clients like a simple solution to managing employee communications and postponement?
  • Would your clients like to solve the problem of pro-rata contributions?
  • Would your clients like to reduce the number of employee refunds you have to process?

Contact us today and we can talk you through how this can work for you.