OCT14WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The information we provide

OCT14WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

Rebecca Woodley and Ken Tymms

Industry liaison managers

28 October 2014

Automatic enrolment Declaration of compliance (registration)



What is the declaration of compliance

• The declaration of compliance is the legal requirement for you the employer to provide certain information to the regulator about how you’ve complied with your employer duties.

• All employers with one or more workers on their staging date must complete a declaration with the regulator.


• The declaration is mandatory and you could get fined if you don’t do it in time or at all.

• If employers do not complete a declaration then they have failed to comply with the law.

• By completing a declaration, employers are providing information that is then used to confirm that they have complied with their duties.

• We may need to take action, including fines, if employers fail to comply with their duties.

• We are able to help and we can provide guidance or information to help.

Why is declaration important?



When to complete your declaration

• The declaration must be completed within five calendar months of your staging date.

• The regulator will write to you to make you aware of your declaration deadline.

• You can only complete a declaration in full after your staging date and only once you have automatically enrolled any eligible staff.

• If your declaration deadline falls on a Saturday, Sunday or UK public holiday you can submit your declaration on the next working day.

• Don’t leave it until the last day to start the declaration – as you maybe more likely to run out of time and you may not be fully compliant.



Who can complete a declaration?

Declaration can be completed by:

• the employer for example someone from HR or someone from payroll

• a third party representative acting on behalf of the employer (eg an accountant or bookeeper).



Ways of completing a declaration

• The online declaration service is a secure and effective way to record your details, it is:

– available 24 hours a day, seven days a week

– accessed via Government Gateway, a widely used secure public service interface

– accessible any time for employers providing you have your 10 digit letter code.

• If you do not have access to the internet you can complete declaration either by writing to us or calling our customer support centre.



Information you will need to provide

• Employers must provide specific information prescribed in law that are mandatory to the declaration process.

The employer or their third party representative must:

• confirm they have authority to declare on behalf of the employer

• provide their contact details and details for the most senior contact within the organisation

• provide PAYE (pay as you earn) information

• provide workforce details

• provide pension scheme information used for automatic enrolment

• declare that all the data they have provided is accurate.



Starting a declaration

Government Gateway ID:

• This may be an ID that you have previously set up for other purposes.

• If you don’t have an ID, you can create one as part of the login process.

Letter codes and PAYE reference

• Your unique letter code 10-digit number, beginning with a ‘1’.

• Letter codes can be found on all letters received from the regulator

• If you do not know your letter code, or have never received it, please contact us and provide the following:

• employer name

• PAYE scheme reference(s)

• employer address

• your contact details (telephone number, email address, job role).

• Your PAYE reference



About you

Details to provide as the employer:

• name and correspondence details.

If you not the employer:

• employers name and your relationship to the employer

• name of the organisation and the contact details for your employer.



About the employer

You will need to provide either:

• the companies house number

• industrial and provident society number

• registered charity number or

• VAT registration number.

Details of any PAYE schemes that your were using on your staging date, if you operate more than one you will have to provide all the numbers.



PAYE schemes details

In the PAYE scheme details section you will need to provide:

• details of all PAYE schemes that your were using on your staging date

• if you operate more than one you will have to provide all the numbers.



Pension schemes details

In this section, you only need to tell us about any pension schemes you’ve used for automatic enrolment.

•These can be previously existing pension schemes that meet automatic enrolment specifications, or new ones that have been set up especially.

•If you have a scheme that only includes existing members you won’t need to provide details of this scheme.

•If you have a scheme which contains existing workers but will also be used for automatic enrolment, you’ll need to provide details of it.

•If you’re using more than one scheme for automatic enrolment, each scheme should be added separately.



Pension schemes details

For personal pension schemes include:

• the employer pension scheme reference, known as an EPSR

• name and address of the pension scheme provider.

If you are entering occupational pension scheme details you can choose between NEST or other schemes:

•NEST uses an alternative employer pension scheme reference known as ‘unique employer NEST ID’ which appears in the format of EMP followed by nine numbers.

For occupational pension schemes; excluding NEST

•Include the pension scheme name and the pension scheme registry number, known as a PSR.

•Include the employer pension scheme reference, known as an EPSR.

•Information about the address of the pension scheme used which is mandatory if the employers does not have a pension scheme registry number.



Workforce details



Workforce details - Postponement



How often does declaration occur?

• An employer will confirm that the information is correct and complete to the best of their knowledge and submit their declaration of compliance.

• Roughly every three years, you’ll need to re-enrol those staff who have opted out or ceased active membership back into your automatic enrolment pension scheme, provided they’re still eligible.

• This will include staff who have Opted-out or ceased active membership back into your automatic enrolment pension scheme, providing they are still eligible.

• Re-declaration will give the regulator updated information about your organisation, your workforce and the number of staff automatically enrolled.



Keeping records

• An employer is required to keep regular records on all automatic enrolment activity.

• After an employer’s staging date, they must:

– keep certain records on aspects of their compliance with the new duties

– preserve those records

– produce those records to the regulator, if requested.

• You must retain any Opt-in, joining or Opt-out notices you receive from your staff as this is proof that they have exercised these rights.

• Records about the pension schemes.

• Most records must be kept for a minimum of six years, with the exception of those relating to opt-outs, which must be kept for a minimum of four years.

• Employers who outsource business or pensions administration to a third party may authorise the third party to keep or provide the records on their behalf.


Q: We chose to postpone auto-enrolment. When I now go to enter worker details I am asked for the number we had at staging date, but by deferral date we had had new starters and leavers so the calculation doesn't work. Should I be using the number of workers at deferral date?

A: No – we will always need to know about the number of workers in employment on your staging date. For the purposes of the declaration, we do not need to know about new starters after your staging date. If you’ve used postponement, we will need to know on the deferral date what you did with those workers who were in your employment on your staging date.

Question and answers




Q: We contribute 7.5% of gross salary to our employees’ private pension plans or SIPPs. Do we need to complete declaration? We have a part time employee - what are the requirements for declaration?

A: Yes – every employer with at least one worker working or ordinarily working in the UK on their staging date will be required to complete the declaration.

It also will not matter if a worker is part time – if they are a worker (i.e. someone who has entered into a contract of employment with, or other contract to personally perform work or services for, an employer, be it written, verbal or inferred), then the employer will have duties in relation to them.




Q: I would like further information on how you declare compliance if using contractual schemes rather than automatic enrolment specific ones?

A: Employers using contractual enrolment are still required to complete a declaration of compliance after their staging date. However, if they have contractually enrolled all of their workers, they will not need to provide details of the pension schemes they contractually enrolled their workers into, employers only need to provide details of schemes that have been used to automatically enrol eligible jobholders into. They will need to provide details of the scheme if they used it to automatically enrol workers. Instead, the employer will input their workforce details as of the staging date, with all contractually enrolled workers going into the “existing member” field.




Q: In the workforce details it asks "How many eligible jobholders has the employer automatically enrolled". For an employer who used postponement does this refer to employees automatically enrolled at the deferral date AND any eligible jobholders who were enrolled during the postponement period? Does it also include any workers who have qualified and been automatically enrolled after the deferral date?

A: Where the declaration asks how many eligible jobholders have been automatically enrolled, this will be out of the number of workers in your employment on your staging date, and employers will need to input the number of eligible jobholders automatically enrolled from out of this number with effect from either the staging date or the latest deferral date.




Q: Please cover the procedure for companies with one director/shareholder and no other employees, and companies with no directors/employees normally working in the UK. Is there an option to say that no pension scheme has been set up (because none will ever be needed)?

A: If you are not an employer (i.e. you do not employ any workers), then you are not required to complete declaration with the regulator. It is only employers with at least one worker working or ordinarily working in the UK on their staging date who will be required to complete the declaration.




Q: I would like to know more about the declaration requirement in respect of choosing the "Certification-Tier 1" option for auto-enrolment.

A: The declaration remains the same even if the employer has used certification.

Employers are not required to notify us of their intention to certify but when they complete the declaration, they will need to provide details of the scheme, or schemes, that they used for their automatic enrolment duties.




Q: Are there any penalties for late declaration?

A: Yes there are. A fixed penalty notice may be issued if you don’t comply with statutory notices, or if there’s sufficient evidence of a breach of the law. This is fixed at £400 and payable within a specific period.

We can also issue an escalating penalty notice for failure to comply with a statutory notice. This penalty has a prescribed daily rate of £50 to £10,000 depending on the number of staff you have.

Further information can be found in our compliance and enforcement strategy on our website.




Q: I am a bookkeeper, doing the payroll for a client. Where does the responsibility lie for compliance? I'm assuming with the client overall, but can you please confirm this is correct.

A: Employers can outsource the completion of their declaration to a third party if they wish, but the overall responsibility lies with the employer to ensure that it is completed correctly and on time. Responsibility for complying with the duties under the Pensions Act 2008 ultimately rests with the employer. However, the regulator has the power to issue compliance notices to third parties if there has been a breach of the employer duties and this was as a result of the failure of a third party to do something.




Q: How do I know when my declaration has been successfully received? A: The person who completed the declaration will receive an email confirmation

to acknowledge that it has been submitted successfully.

The most senior person named in the declaration will receive a letter confirmation including a summary of the data declared on their behalf.

If you notice that any of the submitted information is incorrect, you can correct it by logging in again and updating the declaration. You have 14 days in which to do so.




Q: If a company has two separate groups within a PAYE scheme e.g one weekly paid, one monthly paid, do they need to be treated as 2 separate PAYE schemes or can they be grouped together?

A: If all of the workers across both PAYE scheme are contracted to work for one employing entity, one declaration will be completed in respect of all PAYE schemes that that employer operates.

If, however, the workers in each PAYE scheme are contracted to separate employers, each employer will need to complete a declaration in respect of all PAYE schemes that they operate.




Q: We are undergoing a company name change prior to staging date. How do I register the necessary changes with the regulator?

A: If you contact our Customer Support department, either by phone, email or letter, and you provide the employer’s PAYE scheme and/ or letter code, we will be able to update our records.



Q: As part of declaration, does an employer need to provide details of which definition of pay reference period is being used? If no details need to be provided as part of the declaration process, how should the definition be recorded? This seems to be an integral part of proving compliance since using different definitions can have a significant effect on an employer's duties.

A: Employers do not have to provide information about their pay reference periods at declaration. Employers will need to determine their pay reference period and this will be the period of time over which they pay their workers their regular remuneration or salary. There are certain records an employer will need to keep which are outlined in our detailed guidance “Record keeping”, but no information about pay reference periods is needed for the declaration.



Q: Do you have to complete declaration just once within the deadline or would it be required to be done every three years?

A: Declaration is initially required within five calendar months of the staging date, and then subsequently roughly every three years at the employer’s re-enrolment date, employers will be required to complete re-declaration with the regulator.



Q: I deal with two companies’ payroll - they both have separate PAYE references how do I complete both declarations as at the moment it will only let me action one?

A: Individuals completing declaration for more than one employer will need to log in as ‘Acting on behalf of an employer’. If you have logged in as an ‘Employer’, you will only be able to complete one declaration.



Q: We only have one employee and he wants to opt out. Do we still need to complete declaration?

A: Yes – every employer with at least one worker on their staging date will need to complete declaration. If an employer only has one worker who wants to opt out, the worker still needs to be automatically enrolled first if they meet the relevant criteria before they can leave the scheme.



Q: I am unclear as to the requirement of the last box in the declaration checklist asking for the number of workers who are not already accounted for. If all staff employed at the staging date were reported then how can those opting in or leaving not have been accounted for? Please could I have clarification on this point.

A: Employers are required to tell the regulator what they did with every worker employed by them at their staging date, regardless of whether they’ve been automatically enrolled or not. The number of workers not accounted for in the previous boxes will be:

• workers who have opted in or joined a scheme between the staging date and when you complete declaration

• workers who are not aged between 22 and the state pension age and do not earn over the relevant earnings trigger,

• workers who have left employment between the staging date and the declaration date,

• new starters between the staging date and the declaration date, and

• workers who have been contractually enrolled between the staging date and the declaration date.



Q: I’ve signed up for a Government Gateway ID and it says I have enrolled, but I haven’t had to provide any information apart from my letter code and PAYE reference number – do this mean I have completed declaration as it is saying that I’ve now enrolled? Are they the same thing?

A: No they’re not – when you successfully signed up for a Government Gateway account, you will have received a message confirming this. This doesn’t mean that you have completed declaration – it just means that you’ve created a Government Gateway account. Through the Government Gateway you will then continue to the declaration service. You will then need to proceed through to the “overview” page, which will enable you to start your declaration. Here you will provide details as to how you have met your employer duties.



Q: The number of persons provided at declaration will not match the number of persons in our PAYE scheme – does this mean that I have to account for the difference, and if so, where?

A: At declaration, employers need to provide the figures for the total number of workers in employment at the staging date. This will be everyone in employment at the staging date but this may not necessarily be everyone included in your PAYE scheme, for example, if your PAYE scheme contains individuals who have left your employment but are in receipt of a pension these do not need to be accounted for in the declaration.



Q: We have taken on new staff since our staging date – do we include them in our workforce figures?

A: No – we only need to know about workers in employment at the employer’s staging date. Any new starters after this date do not need to be recorded for declaration purposes but will be need to be accounted for at re-declaration if they are still in your employ.



Q: What happens if I don’t complete declaration within the timeframes? Can I still complete declaration if it’s late?

A: Employers are required to complete declaration correctly and on time. If an employer is having difficulties with the process of automatic enrolment or gathering the appropriate data required to successfully complete their declaration within the statutory deadline, contact us without delay.

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Q: I have applied the transitional period for a DB scheme in respect of an eligible jobholder who is already an active member of a qualifying pension scheme at our staging date. How do I include this as part of the declaration, as it asks for the number of workers who are already in an existing scheme, and the number of workers that the transitional period applies to?

A: Employers will need tick the box to say that they have applied the transitional period and will need to say how many workers this applied to. They should not include the figure in the number of workers already an active member of a qualifying workplace pension scheme.



Q: If we automatically enrol an eligible jobholder from our staging date, but they then leave during the joining window, what happens then? Do we still write to them, and are they still included in the declaration? If so, where?

A: If the worker employed at the staging date is no longer in employment when the employer comes to complete declaration, they will still be included in the declaration because they were employed at the employer’s staging date. However, when the employer comes to input their workforce details, this individual should be included in box 2 – number of eligible jobholders automatically enrolled.



Q: Can we provide approximate figures at declaration, and then confirm them at a later date? Can this information be updated after the declaration is submitted? If so, how long do we have to update it?

A: The individual completing the declaration has a responsibility to ensure that the information they submit as part of the declaration is correct and complete to the best of their knowledge and belief, and will be required to sign the declaration that this is the case. Therefore, care should be taken to ensure that accurate figures are provided where required. Declarations should not be submitted with inaccurate information as it’s an offence to knowingly or recklessly provide false or misleading information to the regulator. If having completed declaration employers come to learn that some of the details included are incorrect, every effort should be made to correct the declaration as soon as possible and in any event with within two weeks after it was submitted. The employer will be required to re-confirm the legal declaration.



Q: Our automatic enrolment duties have been met as a result of most of our workforce already being active members of a qualifying scheme at our staging date. Why don’t you need details of these pension schemes at the declaration?

A: The law only requires us to capture information about the pension schemes that employers have used to automatically enrol eligible jobholders.



Q: As part of the declaration, do we need to confirm that all of the statutory information was sent to our workers on time?

A: The information required for declaration following an employer’s staging date does not include details of whether employers have issued their statutory communications to their workers on time.



Q: Where should we include workers who were subject to postponement but left employment between our staging date and the end of the postponement period?

A: Workers who were employed on your staging date but ceased employment before your deferral date, and who were therefore not automatically enrolled, should be included in the ‘workforce details’ section, in the field titled ‘how many workers do not fall into the categories above?’.



Q: When entering our workforce details, should we include numbers from our staging date or our deferral date?

A: You must provide the total number of workers on your staging date, the number of workers who were in a qualifying pension scheme on and before your staging date, and the number of eligible jobholders automatically enrolled with effect from your staging date (if you have not used postponement).

If you’ve used postponement for all of your workers in employment on your staging date, you must provide the number of eligible jobholders automatically enrolled with effect from your deferral date(s).

If you have applied postponement to only some of your workers, you must provide both the number of eligible jobholders automatically enrolled with effect from your staging date and the number automatically enrolled with effect from your deferral date(s).




Useful links

• Information about declaration: www.thepensionsregulator.gov.uk/employers/automatic-enrolment-declaration.aspx

• Online declaration service: start filling in your detailswww.autoenrol.tpr.gov.uk/

• Declaration of compliance (registration) checklistwww.tpr.gov.uk/docs/automatic-enrolment-online-registration-checklist.pdf

• Declaration video demonstration

• A walk-through guide on how to use the online service.https://registration.livegroup.co.uk/registration/Downloads/



Useful links

• Compliance and enforcement:www.tpr.gov.uk/docs/pensions-reform-compliance-and-enforcement-strategy.pdf

• What happens if I don’t comply:www.thepensionsregulator.gov.uk/employers/what-happens-if-i-dont-comply.aspx

• Are you ready?:https://registration.livegroup.co.uk/ae_areyouready/

• Know your workforce:www.thepensionsregulator.gov.uk/employers/know-your-workforce.aspx

• Timeline planner: www.thepensionsregulator.gov.uk/employers/planning-for-automatic-enrolment.aspx



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Documents

OCT14WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The information we provide