Automatic enrolment

Auto-enrolment means that eligible employees have to actively decide not to be in a scheme once they have been enrolled – to opt-out rather than opt-in – during a six-week ‘window’ for automatic pension enrolment.

Larger companies have been automatically enrolling employees since October 2012, and will begin automatically re-enrolling employees who opted-out in 2012 this October.

From this summer organisations with fewer than 50 employees begin enrolling employees, and those with fewer than 30 employees (including micro-businesses) will see auto-enrolment phased in between June 2015 and February 2018.

The Pensions Regulator website provides details about exceptions and bringing staging dates forward: www.thepensionsregulator.gov.uk/employers/know-your-staging-date.aspx.