Auto-enrolment laws require certain information to be provided to all workers. All communications must be issued within 6 weeks of the event, for example, to postpone a new recruit a postponement letter must be issued within 6 weeks of the employment start date.
The specific information requirements can be summarised in 3 letters:
- Postponement, which must be issued for each period of postponement, and followed by one of the following at the end of postponement
- Not eligible (not enrolled)
- Enrolment, which requires detailed information outlined in the next section
The Pensions Regulator (TPR) provides templates online here.
Enrolment communication requirements
The enrolment information consists of 3 elements:
- Letter - TPR provide 2 versions for staff who pay tax or do not pay tax, Salvus has a combined example letter here
- TPR insert - from the above TPR link 'Insert to accompany letter template for those who must be put into a pension scheme'
- Pension information - Salvus Master Trust provides all employers with a Factsheet, it is emailed at set up and can also be downloaded when logged in from the home page
All of the above must be issued for the following enrolment events:
- Opt in - any request to opt in and the worker earns over the Lower Level of Qualifying Earnings
- Immediate re-enrolment - for example, if changing pension provider immediate re-enrolment occurs the day after the previous pension closes
Notifying enrolees of their opt out rights
Anyone enrolled through any of the above enrolment events has a right to opt out and receive a refund of contributions since the enrolment event. The right to a refund applies to those opting out during the one month opt out period, which starts on the day the above information is issued (or the enrolment date if the information is issued before the enrolment date).
- the example enrolment letter contains detailed information of the opt out process
- other events, such as joining through contractual obligations rather than auto-enrolment, or a request to join and the worker earns the Lower Level of Qualifying Earnings or less, are not entitled to a refund if they stop contributing
Notifying Salvus of the right to opt out
As Salvus must facilitate a member opt out, Salvus must be informed of the right to opt out. Failure to do so can result in delays in refunds and possible charges for additional administration work.
When submitting data for a new enrolee, please ensure the date the enrolment information was issued is included in the 'Comms Date' on the payroll submission file.