Yes, the maximum legal period that you can delay putting employees into your pension scheme is three months if you’ve a monthly payroll and 12 weeks if you’ve a weekly payroll. If you plan to do this, your staging date stays the same but your first pay reference period (PRP) start date will change according to when we’ll expect that first contribution. Postponement is an option under the Simply Tailor sign-up route.
There are three types of postponement. These can be used separately or combined. They can’t be used back to back.
We only need to know about postponement choices if The People’s Pension is being used to assess the workforce.
Staging Postponement – An employer can postpone assessing their workforce from their staging date for up to three months.
New Starter Postponement – An employer can postpone assessing their new starters for up to three months.
Eligibility Postponement – An employer can postpone enrolling someone who has become eligible for the first time, to cope with spikes in earnings. This makes allowances for those individuals who may only become an eligible employee every now and again and saves the administrative duties associated with frequently changing someone’s status.
You can choose to postpone auto-enrolment for up to three months. The staging/duties start date remains the date that your auto-enrolment duties start to apply.
Postponement gives you up to three months extra to work out who you need to put into a pension scheme – either from your staging/duties start date or from the date any future employees join your company.
Please note though, you’ll have to let your employees know if you’re postponing (within six weeks of the date postponement starts), and they can still ask to join earlier. And you can only delay by choosing the postponement option in our Simply Tailor sign-up process.
There are several reasons you may decide to postpone. For example, it gives you the flexibility to align your administration and payroll processes. It can also help you to offset any contributions for temporary or short-term employees who leave soon after joining your company or reach the trigger for being auto-enrolled just before ceasing employment.
You can choose to use postponement on the following dates:
– your staging date/duties start date,
– the first day of employment for any new employees who join your company after your staging date/duties start date,
– the date an employee reaches the trigger to be an eligible jobholder after your staging date/duties start date (e.g. when an employee turns 22 years old).
You must write to tell the employees whose auto-enrolment you’re postponing. You’ll have six weeks from the date postponement starts to write to them.