Employers must prepare for auto re-enrolment, warns Hymans Robertson

Hymans Robertson has warned that medium to large sized employers should begin preparing now for auto re-enrolment into workplace pension schemes in 2025. 

This applies to employers with 500 to 50,000 employees, who first enrolled staff in 2013 and are required by law to re-enrol every three years.

The process requires reviewing employee records to identify those eligible for re-enrolment, including staff who are not currently in the pension scheme or who have dropped below minimum contribution levels. 

Administrative teams may face increased workload due to complex data processing. 

Errors or non-compliance can result in fines.

Hannah English, head of DC corporate consulting at Hymans Robertson, said: “It’s vitally important that companies start preparing as soon as possible to meet their legal obligations for auto re-enrolment. 

“Since it was introduced, auto-enrolment has made an enormous difference in getting people enrolled in pension schemes, and ultimately improving their retirement incomes. 

“This is a positive trend that employers must ensure is continued by making sure they follow the re-enrolment process in the right way.”

English added: “A significant amount of the re-enrolment process involves employers, or their pension providers, reviewing employee records. 

“Employers must identify employees who are eligible for re-enrolment; those who are not members of their pension scheme, and those who have fallen below the minimum contribution requirements.

“While identifying eligible employees is the first step, it’s perhaps the most onerous timewise so employers need to make sure they leave time to do this.”

She said: “They’ll then be able to set a re-enrolment date, communicate these changes to employees, check for compliance issues, and ensure records are securely kept.

“Beginning this long journey as early as possible will give employers the best chance for this all to go as smoothly as possible. 

“If it’s a seamless process, then they’ll be giving their employees the best chance of maximising their standard of living in retirement.”