General Auto Enrolment Activities

This article will cover some of the general processes that take place within auto enrolment.

1. Assess and Auto Enroll Employees

1.1 Legislation

The employers are required to assess all their employees right from the staging date (or after the postponement period, if applied) and auto-enroll the employees who are found to be eligible jobholders.

1.2 How to comply

Primo Payroll automatically assesses the employees and auto enrols the eligible jobholders when the ‘Run Payroll’ is done. This process takes place in the background and hence it doesn’t require the user intervention.

2. Send Communication

Relevant to: NEST, NOW, People’s Pension (TPP), L&G, Aviva

2.1 Legislation

As per the legislation, the employers are required to communicate to their employees about auto enrolment and the employee's auto enrolment status. The employers should let their employees know the below from time to time. 

  • Information to eligible jobholders as part of the automatic enrolment, re-enrolment and enrolment (opt-in) process, about being auto enrolled into a pension scheme and the option to opt-out within the opt-out period. 
  • Information to non-eligible jobholders with the right to opt-in and entitled workers with a right to join-in to a pension scheme.
  • Information about postponement, where an employer chooses to use postponement.

2.2 How to comply

Primo Payroll facilitates the communication to the employees using the email design templates. The user needs to fill in these ‘Email Designs’ beforehand from

Settings -> Email & SMS -> Email Templates
And, from

Employee List -> Bell icon -> AE tasks -> AE Communication to send,

the user will be able to email the Postponement/Assessment communication emails. If the communication emails are not sent manually, ‘Close Period’ will send the communications out.

3. Process Opt-in/Join-in Requests

Relevant to: (a) NEST (b) NOW (c) Legal & General (d) NEST via PensionSync (e) Aviva

3.1 Legislation

Employees who are categorised as ‘Non-Eligible Jobholders’ can ‘Opt-in’ to a pension scheme and those employees categorised as ‘Entitled Workers’ can ‘Join-in’ to a pension scheme. Though the terminologies used are different, both Opt-in and Join-in means the same to the program in terms of functionality. 
If a non-eligible Jobholder Opts-in, you are required to pay in the employer contribution. If an entitled worker Joins-in you don’t have to.  

3.2 How to comply

The employees who wish to opt-in or join-in to a pension scheme may contact you or the pension provider. In case, if you receive the request, you may do so by clicking from the ‘Opt-in/Join-in’ button in the employee record if you are using PensionSync. If you are using Smart Pension, you need to ask the employees to Opt-in from Smart Pension.

4. Calculate Pension Contributions

The ‘Run Payroll’ calculates the pension contribution for the employees who have been assessed and categorised as an Eligible Jobholder or for the employees who have opted-in or joined-in to a pension scheme. 
The Pension Contribution is calculated based on the pension settings available in

Settings -> Pension Schemes,

which will be the same as the pension scheme settings with the pension provider. 

5. Process Opt-out Requests

5.1 Legislation

Employees who have been automatically enrolled into a pension scheme have the right to opt-out of the pension scheme within 30 days from the date the employee has been auto enrolled into the pension scheme. 

5.2 How to comply

The opt-out requests are processed by the pension provider. If any employee wishes to opt-out of the pension scheme, they need to contact the pension provider. 

6. Process Opt-out Refund

6.1 Legislation

The eligible jobholders who opts out of the pension scheme within the 30 days opt-out period is eligible for a pension refund. The employer should refund the pension deducted during this period back to the employee. 

6.2 How to comply

The Run-Payroll retrieves the opt-out information from the pension provider and calculates a refund if applicable. Processing opt out refunds is carried out automatically in Primo Payroll. When the opt-out request is received from the pension provider, the program assigns the Refund Pension Scheme ID (Settings -> AE Settings) for Refund Processing to that employee. The refund is calculated and paid as a negative contribution in that period. 

7. Re-Enrolment

7.1 Legislation

The legislation says the employees who have opted out or ceased active membership needs to be assessed and auto enrolled every 3 years from their Staging date if found eligible. It is up to the employer to decide if they wish to include the employees who have opted out/ceased active membership in the past 12 months of the Re-enrolment date. 

7.2 How to comply

In Primo Payroll, the Re-enrolment process has been automated. The user is not required to monitor and assess the opted-out or ceased membership employees every 3 years, rather the program would do this automatically.