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How to process pension re-enrolment with the Pensions Module

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Summary

Find out how to use the pensions module to process cyclical re-enrolment in Sage 50 Payroll.

Description

The Pensions Module makes it easy to assess your employees and re-enrol anyone who meets the re-enrolment criteria.

If you have multiple pay frequencies, for example, a weekly and monthly payroll, you'll enrol your weekly paid employees first.

NOTE:

A Sage expert can explain how re-enrolment works, and help you complete it in your software, in a bespoke training session.

Resolution

When must you assess for re-enrolment?

Use a tax calendar to find out which tax period your re-enrolment date falls in. This helps you prepare for cyclical re-enrolment with the Pensions Module.

Next, check the date you're paying your employees in that tax period.

TIP:

The dates your employees earned their pay aren't relevant when identifying the pay run to complete re-enrolment.

To see an example, click the options below:

How to assess employees

  1. Set your process date and enter your payments as normal, then click Pension Assessment.
  2. To check which employees the assessment has re-enrolled, click the View dropdown list.
  3. Select Changed this period.
  4. To check the changes, hover over the flag next to the employee's name.

For employees who re-enrolled, their status changes to Auto-enrolled.

What if no one's re-enrolled?

You can find that you don't need to enroll any of your employees during cyclical re-enrolment.

For example, if no one has opted out, or if those who have opted out aren't eligible jobholders during the re-enrolment assessment.

If so, skip to the complete your re-declaration of compliance section to complete your re-enrolment.

Send new member enrolment details to your pension provider

You can send your pension data as normal to send new member enrolment files to your pension provider.

Write to the employees you re-enrol

Write to any employees that you re-enrol within six weeks of your re-enrolment date. You can use Send Pension Correspondence to generate re-enrolment letters to the relevant employees.

Complete your re-declaration of compliance

Advise The Pension Regulator (TPR) how you've met your legal duties by completing your re-declaration of compliance.

This is due within five months of the third anniversary of your staging date.

TIP:

You don't need to record your re-declaration of compliance within Sage 50 Payroll.  

What if my employee wants to opt out again?

Sometimes, you can have an employee who doesn't want to re-enrol to the pension scheme.

If they're eligible for re-enrolment, you must still re-enrol the employee into your pension scheme.

Once you re-enrol your employee to your workplace pension scheme, the employee must contact the pension provider to opt out.

You can then process opt-out/leave requests in the Pensions Module in the pay period after you receive confirmation of the opt-out.

Cyclical re-enrolment date

After you process re-enrolment, your software moves the re-enrolment date on by three years, ready for the next time it's due.

If you prefer, you can select any date within your six-month re-enrolment window.

Your six-month window runs from three months before, to three months after either the three-year anniversary of:

  • Your duty start date, this applies when you reach your first re-enrolment since your duties began
  • Your last cyclical re-enrolment date, this applies if you've completed the re-enrolment before in your company

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