New flexibilities for employers auto-enrolling workers into pension saving

One year into the auto-enrolment regime, some of the complexities encountered so far by employers in practice will shortly be ironed out. New regulations will introduce more flexibility for employers, including those who have already staged into the regime. The changes cover a range of issues, from basic elements such as the deadline for auto-enrolling an eligible worker to technical points on the test scheme standards and introduce alternative definitions of pay reference periods.

If you have already implemented auto-enrolment, the new regulations should not require you to change any of your systems — but they may in some areas provide new flexibility that could be useful in future.

If you have not yet implemented auto-enrolment in your organisation, consider the changes with your HR and payroll representatives to see if any of the new definitions and deadlines could be helpful to you. Bear in mind the government’s comment that the lengthened deadlines are end dates rather than targets; you should ensure that your systems are designed to get workers into pension saving, and to transfer contributions to the scheme, as efficiently as possible…

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