Changes to automatic enrolment rules announced

RA Now

Alternative definitions of pay reference periods for assessing jobholder status and determining when a scheme qualifies for auto-enrolment have been published as part of changes to the pensions auto-enrolment rules announced by the government.

Employers will also have longer to provide information to individuals on their opt-in and joining rights, as the deadline extends from one month to six weeks.

More than 100 responses to the Department for Work and Pensions’ consultation, Workplace pensions: proposed technical changes to auto-enrolment, have helped shape the rule changes.

“Employers and our partners in the pensions and payroll industry have made a major contribution in delivering these landmark reforms since October last year,” said Steve Webb, Minister for Pensions.

“Now, one year in, we want to build on this success as medium-sized employers prepare to automatically enrol their staff into a workplace pension. These changes are aimed at streamlining the system and making it easier for employers to meet their duties,” he added.

Under the amendments the automatic enrolment joining window will also be extended from one month to six weeks, and the extended deadline for passing worker contributions to a pension scheme applies to all new joiners, including contract joiners.

There will also be greater clarity and consistency concerning the requirements for defined benefit test schemes in relation to the appropriate age, service limits and revaluation that apply in those schemes.

The majority of these changes will be implemented on 1 November 2013 and those on the joining window and registration deadlines will come into force from 1 April 2014.