Questions and answers on draft pensions regulations 2009
When does the jobholder need to be enrolled?
Within 14 days of becoming entitled to automatic enrolment.
What information does the employer need to give to the jobholder and when?
The employer needs to give the jobholder written information about the scheme, the level of contributions, and the jobholder's rights in relation to the scheme.
This needs to be provided within seven days of becoming entitled to automatic enrolment where the employer is using a personal pension scheme and within 14 days where the employer is using an occupational pension scheme.
If the employer is using a personal pension scheme it will have to provide the jobholder within seven days of becoming entitled to automatic enrolment with additional information about the "key features" of the scheme.
What if the jobholder is already enrolled in a scheme?
As long as the scheme is a qualifying scheme the employer has 30 days from the date when the jobholder becomes entitled to automatic enrolment to provide written confirmation of the name and details of the scheme and that it is a qualifying scheme for the purposes of the legislation.
When does the employer have to start making contributions?
The employer must deduct any contributions payable by the jobholder from the jobholder's pay with effect from the automatic enrolment date.
What information does the employer need to give to the pension scheme and when?
The employer must provide minimal essential information (name, date of birth, automatic enrolment date, pay details, work address, NI number and gender). This must be provided within seven days of the automatic enrolment date to a personal pension scheme.
The employer may provide additional information if required by the scheme, and does not need to obtain the jobholder's consent to provide any of the information set out in the regulations.
When can a jobholder opt out of automatic enrolment?
The period within which the jobholder can opt out of the scheme runs for 30 days. The start date is different for occupational pension schemes and personal pension schemes.
How can a jobholder opt out of automatic enrolment?
The jobholder must complete an opt out notice in the form set out in the schedule to the regulations (or if not in this form it must contain certain specified information). The notice will be provided by the scheme not the employer.
The employer is required to advise the jobholder if this is invalid because, for example, it has not been correctly completed.
The jobholder will send the notice to the employer, who then has 7 days to send it to the scheme.
What if money has been paid into the scheme before the jobholder opts out?
The jobholder is entitled to a full refund of the employee contributions, which must be provided by the employer regardless of whether the employer is able to get this money back from the scheme. The refund to the jobholder must be made by the latest of the second payday following the opt out notice or within 21 days of the opt out notice.
The regulations state that the scheme has a maximum of 21 days from the date the scheme received the opt out notice to return all monies to the employer, including the employer contributions. However the consultation document envisages that some employers may agree separately with the scheme for the funds to be retained.
Is there any opportunity to postpone automatic enrolment?
If certain conditions are satisfied employers using occupational pension schemes will be able to postpone automatic enrolment for up to 90 days. This only appears to apply to schemes with higher level provision than that required by the legislation.
It is anticipated that further regulations governing the remaining elements of the employer duty will be published in autumn 2009.