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Lucy Higgin

Pension re-enrollment

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I have just completed my cyclical pension re-enrollment. I was expecting one employee to be re-enrolled who has previously opted out of pension contributions. However he wasn't re-enrolled during the assessment and I'm trying to work out why.

He is just under state pension age and opted out over 12 months ago therefore I expected him to be re-enrolled, however he wasn't. Is it because he is currently receiving SSP and has done so for the last 10 weeks as he is recovering from a hip replacement therefore he doesn't currently have qualifying earnings, although his pay to date prior to starting SSP was approximately £19,000.00. As of yet he is not expected back to work anytime soon and will continue to receive SSP.

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    Hi Lucy,

    Thanks for using Sage City Slight smile

    I notice this query hasn't had a community response.

    From what you've explained it sounds like his pay is below the threshold to be eligible for auto enrolment. Pension re-enrolment uses the earnings in the pay run when re-enrolment is due, it doesn't factor in annual pay or any prior periods.

    In a monthly payroll for example, this threshold is £833 in the 2022/2023 tax year. You can check the thresholds for each pay frequency in your software by clicking Company, Legislation then the Automatic Enrolment tab.

    If this has answered your question please click More > Verify Answer.

    Regards,
    John Howells
    Sage UKI

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    The check for auto-enrolment is a current-pay-only check - it works like tax with a W1/M1 indicator.

    If they exceed the pay-frequency eligible threshold in that pay period (eg through additional, seasonal work), they have to be autoenrolled, regardless of the fact that their total annual salary could be less than the non-eligible threshold.

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