Every two years, as per the pension regulations, PAYE schemes must undergo re-assessment to ensure compliance. Employees who previously opted out (unless they have done so within the last twelve months) will be automatically re-enrolled. Contributions to the pension scheme will be displayed on the payslip.
The underlying reason for this approach is that the government acknowledges people's circumstances may change over time, particularly as they grow older, and this serves as a prompt for individuals to reconsider their pension provision. Employees still retain the right to opt out, and if they do so within the first month, pension contributions are refunded.
Additionally, a Re-Declaration of Compliance must be submitted to The Pension Regulator every two years. To relieve you of this burden, ThePayTeam handles the administration as part of the payroll service we offer, keeping you informed at every stage.
If circumstances have changed, and your employee decides to initiate a pension scheme, ThePayTeam provides a comprehensive payroll and pension solution that covers all aspects of the new legislation, including vital employee communications. Our specialist software directly connects with NEST and numerous other pension providers. For our fully managed NEST pension solution, we charge £60 annually.
You can find out more about Pension Re-enrolment here.
