Review Auto Enrolment

Review Auto Enrolment Process

The Draft Pay Pun will run an assessment to determine the auto-enrolment eligibility of employees who are not currently in a pension scheme. Employees assessed as 'Eligible jobholders' (see eligibility statuses below) should be automatically enrolled into the auto-enrolment pension scheme that is defined against the associated Employer.

Note: any employees with Job Role Status flagged as 'Contractor' or 'Non-Executive Director' will be excluded from the assessment.

After the payroll is drafted the 'Auto enrolment - actions and assessment' section of Compensation records will be updated as follows:

Note - at this point the Compensation record is not updated with the pension scheme and employer and employee contribution percentages. This is done using the Review auto enrolment button from the main payroll process screen (as highlighted below).

The Review Auto-Enrolment button becomes available only after the Draft Pay Run has been processed. This review screen is used to confirm and apply the pension scheme and employer and employee contribution rates determined as a result of the Draft Pay Run assessment.

Click on the Review Auto-Enrolment button to check for any auto-enrolment related updates that may be required:

This will open the Auto enrolment review screen which will show what actions are required for the current period.

Employees will be assigned an AE eligibility of 'Eligible Jobholder', 'Non-eligible Jobholder' or 'Entitled worker' (see below for eligibility definitions), as assessed during by the Draft Pay Run. The 'Pension scheme', 'ER contribution %' and 'EE contribution %' will be shown on the review screen for Eligible jobholders.

The Employer and Employee percentage contributions that are shown below are the standard percentages as defined against the associated Company pension scheme record:

• Employee name: link is to the Employee's current Compensation record

• Enrolment status:

  • Non-Member: employee is not currently assigned to a pension scheme and has no Employer/Employee contributions set against the current Compensation record

  • 'Member: employee has a pension scheme and Employer/Employee contribution percentages set against the current Compensation record.

• AE eligibility: One of 'Eligible Jobholder', 'Non-eligible Jobholder' or 'Entitled Worker' and is taken from the Compensation record.

• Action: Auto-enrolment actions to be taken in this period:

  • Enrol: the Employee should be enrolled into the Employer's auto-enrolment pension scheme

  • Re-enrol: due to cyclical re-enrolment an Employee who has previously opted out should be re-enrolled into the Employer's auto-enrolment pension scheme

  • Postpone: where the assessment has been deferred (for up to 3 months)

  • Opt-in: the Employee has opted in and should be enrolled into the Employer’s auto enrolment pension scheme

  • Join: the Employee has requested to join and should be put into a pension scheme. The pension scheme should be selected manually - it does not need to be an auto enrolment scheme. Employer contributions are not mandatory.

  • Opt-out/Cease: contributions should be stopped for this Employee. The pension provider will also inform whether any refund is due.

  • Notify: employees will be notified about their rights, have the enrolment process explained and be guided on how to opt-in or join.

• Action date: date by which action should be undertaken

• Deferral date: date the Employee’s assessment will be deferred to if postponement has been set. This date is rule-based but can be overwritten if required. If the rule is to changed please contact XCD.

• Pension scheme: default auto-enrolment pension scheme for the current Employer and will be populated automatically on this screen for Eligible Jobholders, and for Non-eligible Jobholders who have opted in. The pension scheme must be manually entered for Entitled Workers i.e. will not default from the Employer. If the default Pension scheme is overwritten the employer and Employer contribution percentages must be manually entered.

• Effective from: the date when Pension contributions should be started or stopped. This date is calculated by the system and can be overwritten

• ER contribution %: populated automatically on screen for Eligible Jobholders and for Non-eligible Jobholders who have opted in. Percentage can be manually overwritten. Where employee assessed as an Entitled Worker should be manually entered if Employers is to make a contribution.

• EE contribution %: populated automatically on screen for Eligible Jobholders and for Non-eligible Jobholders who have opted in. Percentage can be manually overwritten. Where employee assessed as an Entitled Worker should be manually entered.

• AE notice: identifies type of notice that will be emailed to the employee.

  • Enrol: this informs the Employee that they have been enrolled in a pension scheme, tells them why and gives details of how to leave the scheme if they so wish

  • Postpone: this informs the Employee that the assessment has been deferred, gives the deferral date and details of how the process will work

  • Notify: this informs the Employee that they have not been enrolled into a pension scheme, tells them why and gives details of how to opt-in or join a pension scheme

Once the auto-enrolment actions have been reviewed and agreed, select the relevant employees (or click on the top check box to select all employees). Click on the Save & action button. This will update employee Compensation records with the relevant pension details and also email employees with the appropriate notification.

Each employee's current Compensation record will be updated with the default auto-enrolment pension scheme and employee and employer contribution percentages from the review screen:

The 'Auto enrolment - actions and assessment' section on the Compensation records will also be updated:

Note - Enrolment status has been changed to 'Member'.

If the update relates to an 'Enrol' action the current Compensation record will be updated. If the updates relates to a 'Opt-In' or 'Join' a new Compensation record is created.

The Pay Run should then be redrafted to process the pension updates.

Cyclical re-enrolment

Every 3 years, the employer must reassess and where necessary re-enrol employees - the employees may then opt-out again if they so desire.

The Cyclical re-enrolment date can be found on the Employer record. This is the date on which all employees who have previously opted out will be reassessed. The Review auto-enrolment screen will then mark appropriate employees for enrolment

Note: any employees who had opted out within the year prior to the cyclical re-enrolment date will not be marked for re-enrolment.