What to do if you've missed the pension deadline
In October 2017 The Pensions Regulator (TPR) introduced step by step guidance for employers that have missed their duties start date (staging date).
First, they need to clarify what their automatic enrolment duties are and comply with them immediately. The actions required by the employer depend on how late they are in setting up a pension scheme.
If the employer is less than six weeks after their duties start date...
Postponement can be applied to delay the assessment of the workforce and there is no need to backdate contributions. Postponement can for a period of up to three months from the duties start date, giving extra time to meet legal auto enrolment duties if needed. In this case, the employer must issue communications to all employees informing them about auto enrolment and detailing what their rights are.
Alternatively, the staff can be enrolled into the workplace pension scheme. The employer may choose to backdate their employees scheme membership to the day that they first met the age and earnings criteria to be put into a scheme and to backdate contributions as well.
If the employer is more than six weeks after their duties start date...
The employer will need to pay any contributions that they should have made back to the duties start date. The employer will need to work out what these contributions are and backdate them.
Backdating contributions
- When the pension scheme is set up, the employer should tell the pension provider that they need to backdate the contributions.
- The employer will need to work out how much they will need to backdate and from when.
- The employer should re-run their payroll process for the period back to when employee first met the criteria for automatic enrolment, this will provide the employer with the contribution amounts that need to be backdated.
- The employer must pay any unpaid employer contributions and give the option to their staff to pay their own – unless employer decides to pay it for them.
- The employer needs to pay staff contributions into their chosen scheme on an ongoing basis, each time they run their payroll.
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