We’ve concluded our series but your work certainly isn’t!
So you’ve assessed your workforce, chosen a scheme, communicated it effectively and rolled it out to your workforce – what next?
Well, as an employer I’m afraid the buck doesn’t stop there. It’s your legal duty to maintain accurate records to show that you have complied with regulations. Keeping accurate records also makes good business sense because it can help you to defend yourself against a dispute with an employee and avoid costly litigation.
So what data must you hold and for how long?
By law, there are two different types of records that an employer must keep. The first is records about jobholders and workers and includes:
• National Insurance number (where one exists)
• Date of birth
• Gross qualifying earnings in each relevant pay reference period
• The contributions payable in each relevant pay reference period by an employer to the scheme, and the amount payable. This includes contributions due on the employer’s behalf and deductions made from earnings
• The date contributions were paid to the scheme
• Any opt-out documentation
Records must also be kept about the pension scheme itself, and this would include:
• Pension scheme reference
• Scheme name and address
• Any evidence showing that a scheme meets the regulatory criteria
All Auto enrolment records need to be kept for a minimum of 6 years, except for opt-out documentation which only needs to be kept for 4.
We’d like to say that this should serve only as a simple guide and for a full list of requirements you will need to visit this link.
In addition to maintaining accurate data, do be vigilant in monitoring staff ages and earnings. If you currently employ people under 22 or pay workers under £10,000 you’ll need to ensure they are automatically enrolled once they reach the qualifying age or earnings threshold.
Similarly, you’ll also need to revisit all employees that have chosen to opt out every 3 years and automatically enrol them again.
So that’s the end of our blog sequence on Auto Enrolment. We hope you have find it useful and informative.
We’ve tried to cover as much as possible but if you need a little more info why not click here to visit our website? Want to be kept up to date with regular monthly economic and property market reviews sent straight to your email? Click here to subscribe.
If you have not yet spoken to us about your options, drop us a call today on 020 7562 5858 or email email@example.com. We look forward to hearing from you shortly.