Auto Enrolment – Myth or Fact……

Below are some common myths and the actual facts behind some of the most common topics of Auto Enrolment;

 

1. Myth – Postponement  delays the staging date and there is no need to do anything until then.

Reality – Postponement does not change the staging date (and other duties still apply in this period). 

2. Myth – Employers can work out their own  staging date.

Reality – Employers are unlikely to know their PAYE size on 1st April 2012, so should use staging date tool.

3. Myth – The Pay reference period (PRP)is the same as the pay frequency.

Reality – PRP is often the same as the pay frequency, but may not be.

4. Myth – Pensionable pay is used to determine which category a worker is (e.g. EJH).

Reality – Qualifying earnings must be used for assessment, not pensionable earnings.

5. Myth – A person who leaves a pension scheme can be left until re-enrolment.

Reality – Workers who have never been an EJH and an active member will need to be monitored. 

6. Myth – People contractually enrolled get an ‘Opt Out’ window.

Reality – A contractual enrolment has no ‘Opt Out’ window, but can exit under scheme rules.

7. Myth – You can’t ‘Opt Out’ until a contribution has been taken.

Reality – If the ‘Opt Out’ window opens before the first payday, a contribution may not be taken.

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