Pensions - Articles - Employers should start preparing now for auto re enrolment


Mid to large sized employers – those with 500 to 50,000 employees – should be re-enrolling employees into their workplace pension schemes in 2025 as part of their mandatory three-year requirement, says Hymans Robertson. It’s vital employers prepare properly to undertake this task, despite it being time-consuming, to ensure their employees save for retirement.

 Auto re-enrolment in a pension scheme is a regulatory imperative for employers. As auto re-enrolment happens every three years, this year employers most impacted will be those with 500 to 50,000 employees; employers of this size first had to enrol in 2013. Preparing for re-enrolment can take time as it involves complex data-processing placing pressure on administrative teams. It is essential that this is done correctly to avoid errors or potential fines for not complying.

 Commenting on the need for employers to start preparing as soon as possible for auto re-enrolment, Hannah English, Head of DC Corporate Consulting, Hymans Robertson, says: “It’s vitally important that companies start preparing as soon as possible to meet their legal obligations for auto re-enrolment. Since it was introduced, auto-enrolment has made an enormous difference in getting people enrolled in pension schemes, and ultimately improving their retirement incomes. This is a positive trend that employers must ensure is continued by making sure they follow the re-enrolment process in the right way.

 “A significant amount of the re-enrolment process involves employers, or their pension providers, reviewing employee records. Employers must identify employees who are eligible for re-enrolment; those who are not members of their pension scheme, and those who have fallen below the minimum contribution requirements. While identifying eligible employees is the first step, it’s perhaps the most onerous timewise so employers need to make sure they leave time to do this. They’ll then be able to set a re-enrolment date, communicate these changes to employees, check for compliance issues, and ensure records are securely kept. Beginning this long journey as early as possible will give employers the best chance for this all to go as smoothly as possible. If it’s a seamless process, then they’ll be giving their employees the best chance of maximising their standard of living in retirement.”

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