1. Automatic enrolment Workplace Pensions Reform
August 2014
The information TPR provide is for guidance only and should not be taken as a definitive interpretation of the law.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

2. Topics Why is automatic enrolment being introduced? •
What employers need to do
Staging dates and overall timetable
Who are your workers?
Worker categories and the duties and rights for pension scheme enrolment
Communicating with workers
Qualifying earnings and the automatic enrolment processes
Postponement
Opt-ins and Opt-outs
Monitoring worker status and re-enrolment
Keeping records
Declaration of compliance (registration)
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

3. Why is automatic enrolment being introduced?
As a society we are living longer, healthier lives.
There are currently four people of working age
for every pensioner  by 2050 there will be just two.
Millions of people are under-saving for their retirement. •
7 million people are under-saving
Only 1 in 3 private sector workers were in a pension scheme in 2012
 and the trend has been downwards for the last 40 years.
The reforms being introduced now will help millions of individuals to save more (or save for the first time) for their retirement.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

4. Overview of legal duties and safeguards
Automatic enrolment legislation gives employers a duty to:
automatically enrol all eligible jobholders
communicate to workers providing timely and appropriate information
allow non-eligible jobholders to Opt-in and entitled workers to join
manage Opt-outs within the Opt-out period and promptly refund
contributions
automatically re-enrol all eligible jobholders every three years
complete declaration of compliance (registration) with the Regulator
keep records, and
maintain payments of contributions.
The employee safeguards state that employers:
 must not induce workers to Opt-out or cease membership of a scheme
 must not indicate to a potential jobholder that their decision to Opt-out will
affect the outcome of the recruitment process
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

5. What employers will need to do
Nominate a point of contact
Know your staging date and develop a plan
Assess your workforce
Review your pension arrangements
Communicate the changes to all your workers
Automatically enrol your eligible jobholders
Complete declaration of compliance (registration) with the Regulator and keep records
Contribute to your workers’ pensions
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

6. Planning timeline Planning tool: www.tpr.gov.uk/planner
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

7. Do not assume you know the number of people
Staging
The employer duties apply to each employer from their staging date:
– the duties apply to all of the employer’s workers from that date.
The staging date is based on the number of people in the employer’s
PAYE scheme(s) as of 1 April 2012:
– any subsequent changes in PAYE size or usage have no
effect on the staging date.
Generally, larger employers will stage before smaller ones:
– new employers* will go last, from May 2017.
Do not assume you know the number of people
- use our tool
*Employers that did not exist (or were not using a PAYE) as of 1 April 2012.
Large
employers
Medium employers
Small/micro employers
New* employers
Oct 2012
April 2014
June 2015
May 2017
Feb 2018
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

8. Staging profile (volumes of employers)
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

9. Who are your workers? Employers will have duties for workers that are:
aged 16 to 74 (inclusive), and
who work or ordinarily work in the UK*, and
it does not matter if they are full or part-time, permanent or temporary.
There may be other people who will also be included:
overseas workers, who are considered ordinarily working in the UK.
Workers will include:
employees, and
people not employees, who are personal services workers.
* the Channel Isles and the Isle of Man are outside the UK
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

10. Are they a personal services worker?
The employer needs to judge whether or not an individual with a contract to perform work or services personally is undertaking the work as part of their own business.
Does the employer:
have control over an individual’s method of work (eg hours worked)?
provide any employee benefits?
bear all the significant financial risks in carrying out the work
(eg the worker is not financially responsible for their faulty work)?
provide what is required for the individual to carry out the work (eg tools)?
 If most or all of the above are true, then it would be reasonable to consider
that they are not undertaking the work as part of their own business
– and they are a personal services worker.
The list above is not exhaustive and an employer must take into account all relevant considerations and make a reasonable judgement.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

11. Is Eddie a worker?
Eddie is a self employed graphic designer. He works regularly for a company, Acme Workshops Ltd.
His role is unique. He designs (and, if necessary, prints on his own equipment) all the flyers and magazine ads. He also designs and updates their website and forum. Eddie is very important to Acme Workshops’ marketing strategy. It is a nightmare when Eddie is too busy working for other customers, because his contract with Acme does not permit him to send a replacement.
Eddie works unsupervised and, generally, he works from home, but sometimes he works in the offices of Acme Workshops. Eddie invoices Acme Workshops at the end of each campaign design and guarantees the quality of his material.
Question 1 - Should Acme Workshops consider Eddie to be their worker?
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

12. 
Is Eddie a worker?
Eddie is a self employed graphic designer. He works regularly for a company, Acme Workshops Ltd.
His role is unique. He designs (and, if necessary, prints on his own equipment) all the flyers and magazine ads. He also designs and updates their website and forum. Eddie is very important to Acme Workshops’ marketing strategy. It is a nightmare when Eddie is too busy working for other customers, because his contract with Acme does not permit him to send a replacement.
Eddie works unsupervised and, generally, he works from home, but sometimes he works in the offices of Acme Workshops. Eddie invoices Acme Workshops at the end of each campaign design and guarantees the quality of his material.
Eddie cannot reasonably be considered a worker, as:
i) he is not an employee ii) he sometimes uses his own equipment
iii) he works unsupervised and iv) he guarantees the quality of his work
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

13. Is Georgina a worker?
Georgina is a self employed IT professional who works full time for
Acme Workshops Ltd. Georgina supports Acme Workshops’ in house payroll system and is very important to Acme Workshops and no one else has the expertise to do her work when she’s on holiday.
Georgina works in Acme Workshops’ payroll team, alongside Acme Workshops’ own employees in their offices, but sometimes she is allowed to work from home. Georgina invoices Acme Workshops at the end of each month based on the number of days she has worked.
Should Acme Workshops consider Georgina to be their worker?
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

14. 
Is Georgina a worker?
Georgina is a self employed IT professional who works full time for
Acme Workshops Ltd. Georgina supports Acme Workshops’ in house payroll system and is very important to Acme Workshops and no one else has the expertise to do her work when she’s on holiday.
Georgina works in Acme Workshops’ payroll team, alongside Acme Workshops’ own employees in their offices, but sometimes she is allowed to work from home. Georgina invoices Acme Workshops at the end of each month based on the number of days she has worked.
Should Acme Workshops consider Georgina to be their worker?
Georgina can reasonably be considered a worker, because:
she is supervised by Acme (needs permission to work at home)
she works in their offices (uses their office equipment and supplies), and
she is paid a daily rate (the completed work is not guaranteed)
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

15.  Who is excluded? Exclusions from automatic enrolment duties include:
some office-holders who are not considered workers, (eg non-executive director, trustee or elected member), but are only excluded for the activities they carry out as an office holder
serving members of the military are exempt, and •
a company with only one employee, if that employee is also a director of
that company (but only for the work they carry out for that company).
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

16. Who is the worker’s employer?
For a worker who works under a contract of employment (an employee) or who is a personal services worker directly contracted to perform work for the company who pays them:
 the employer will be the legal entity named in the contract.
Otherwise:
for a worker who is supplied by an agent to a third party, to perform work personally, under a contract or arrangement between the agent and the third party, then:
the agent or third party will be the agency worker’s employer, depending on which is responsible for paying the worker
or, if it cannot be determined who is responsible for paying the worker, then whichever actually pays the worker will be considered as their employer.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

17. Non-eligible jobholders can Opt-in to an
Worker categories
Age range
Qualifying earnings
16-21
22-SPA*
SPA*-74
Non-eligible jobholders can Opt-in to an
automatic enrolment
Under £5,772** pa
Entitled worker
Can request to
join a pension
pension scheme
scheme
Between £5,772 pa and up to £10,000** pa
Non-eligible jobholder
Non-eligible jobholder
Eligible jobholder
Non-eligible
jobholder
More than £10,000** pa
Employer must automatically enrol eligible jobholders into an automatic enrolment pension scheme
* SPA = State Pension Age
** Figures for 2014/15
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

18. Thresholds v Pay Reference Periods (PRP) 2014-15
Lower Earnings Threshold
(LET)
Earnings trigger for automatic enrolment
Upper Earnings Limit
Annual
£5,772 pa
£10,000 pa
£41, pa
Bi-annual
£2,886.00
£4,998.00
£20,933.00
1 quarter
£1,443.00
£2,499.00
£10,467.00
1 month
£481.00
£833.00
£3,489.00
4 weeks
£444.00
£768.00
£3,221.00
Fortnight
£222.00
£384.00
£1,611.00
1 week
£111.00
£192.00
£805.00
† For other PRP durations, multiply the number of weeks in the PRP by the weekly amount (eg £192.00)
or number of months by the monthly amount (eg £833.00) etc - or pro-rata if not an exact multiple of any of
the above.
N.B. The Secretary of State will review these figures each tax year.
DM v17L This presentation remains the property of The Pensions Regulator. The content of these slides should not be altered in any way

19. Assessing your workers
Employers will need to assess all their workers on their staging date
unless they choose to use ‘postponement’ (described in later slides).
All qualifying earnings must be used to assess a worker’s category
(ie eligible jobholder, non-eligible jobholder or entitled worker).
Qualifying earnings contains these pay elements:
salary/wages, commission, bonuses, overtime and statutory payments
(excluding expenses).
Eligible jobholders must be automatically enrolled into a suitable scheme
but any active member of a ‘qualifying’ pension scheme with that employer will not need to be automatically enrolled.
After the staging date, employers will have to:
assess all new workers who join them
assess some workers every pay period (see planning tool ‘ongoing responsibilities’)
assess some workers again every three years.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

20. Check suitability of payroll and IT systems
What software will you use to carry out:
assessment
enrolment
communications, and
calculation of pension contributions
This is likely to require data held by payroll and HR systems.
Choices:
payroll software, and/or
non-payroll software or service (can be referred to as “middleware”)
 this may be offered by the pension scheme provider.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

21. Pension schemes Pension schemes can be either:
defined contribution (DC) eg ‘money purchase’
defined benefit (DB) eg ‘final salary’ or ‘career average’.
Qualifying schemes:
if an existing scheme is not a qualifying scheme, scheme members would need to be automatically enrolled into an automatic enrolment scheme if they are eligible jobholders
employers may want to change the contributions levels and/or scheme rules of their existing schemes to make them qualifying.
if qualifying earnings used for pension scheme rules, only qualifying earnings between £5,772*pa and £41,865*pa used for calculation of pension contributions (e.g. for 1 week Pay Reference Period, if QE <= £ in PRP in then contribution = £0).
* Pro-rata of annual amount used in each Pay Reference Period. These figures are for
The Secretary of State will review this amount each tax year.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

22. What pension schemes can be used?
Must be used for automatic enrolment and ‘Opt-ins’
Automatic enrolment scheme
Workers already active members of a qualifying scheme do not need to be automatically enrolled
Employers will need to contribute to the pension scheme
Qualifying scheme
must be tax registered:
and meet minimum criteria
Employers may also use a qualifying scheme or an automatic enrolment scheme for entitled workers
Scheme for
entitled
workers
scheme is registered
must be registered in the UK or EEA*
must have no barrier to automatic enrolment
must be a qualifying scheme
Employers are not required to make an employer contribution
*European Economic Area states
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

23. DC scheme minimum contributions
Phase 1
Phase 3
Phase 2
Min DC 8% total*
Min DC 5% total*
*% of qualifying earnings
Min DC 3%
Minimum DC 2% total contribution*
Min DC 2%
employer*
employer*
Minimum DC 1% employer contribution*
Large employers
Medium employers
Small/micro employers
New
employers
Oct 2012
April 2014
June 2015
May 2017
Oct 2017
Feb 2018
Oct 2018
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

24. Using an existing pension scheme
If you have an existing scheme, what can you use it for?
Is it a qualifying scheme and does it satisfy the minimum criteria?
If it is not a qualifying scheme, it may be possible to change the scheme rules, so that active members would not need autoenrolment.
If it is a contract-based scheme:
the employer and pension provider need to have a signed agreement (where the employer commits to pay the legal minimum employer contributions), and
it is likely to need a jobholder agreement for each active member (an agreement by the member to pay the difference between the employer contributions and the legal minimum total contribution).
Do you also want to use this scheme to automatically enrol your workers?
– Your existing scheme provider may not allow it be made an automatic enrolment scheme (eg the scheme provider would need to provide Opt-out forms on request).
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

25. Choosing a new pension – how to find one
How will you find a suitable pension if you need or want to use a new scheme?
For further information and a list of pension providers see:
The National Association of Pension Funds (NAPF)*
The Association of British Insurers(ABI)*
Pension providers
Not all pension providers may offer you a pension scheme
They may not give you an answer immediately so ask for their timescales
Providers may be at full capacity or have long waiting times
You may wish to ask more than one provider at a time.
National Employment Savings Trust (NEST)* is a pension scheme that
all employers can use to meet their duties  but don’t leave it too late.
* These can be found on our Useful links slide
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

26. Choosing a new pension – factors to consider
It is the employer’s responsibility to choose a pension scheme for their
workers.
Some things to consider:
Most people will stay in the default fund until they leave / retire
– does it provide value for money?
Some providers can support a wider range of languages for the members than others.
For help on how to select a good scheme, please see:
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

27. Postponement does not change or delay the staging date
Postponement suspends the duty of automatic enrolment and the need to
assess and can be used:
at the employer’s staging date for any or all existing workers
on the first day of employment for any new joiner after the staging date, and
on the date a worker meets the criteria to be an eligible jobholder.
Only one postponement per worker can be made at a given time.
Each worker can be postponed from one day up to maximum of three months.
The employer must notify any postponed worker within six weeks and a day of the start of postponement.
The worker has the right to Opt-in or join during postponement.
Employer must assess on the last day of postponement and:
automatically enrol eligible jobholders, and
for those workers not eligible, monitor them each future pay period.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

28. Opting-in and joining
Entitled workers can request to join a scheme at any time.
Non-eligible jobholders can Opt-in at any time.
Eligible jobholders can Opt-in during postponement.
On receipt of any request, employers need to:
assess the worker, to see if they are a jobholder or entitled worker, then
enrol jobholders into an automatic enrolment scheme, and
enrol entitled workers into a scheme of the employer’s choice.
A jobholder must not be required to carry out any further action to achieve active membership (eg the pension scheme should have a default fund).
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

29. ‘Opting-out’
Workers automatically enrolled (or who have opted in) may ‘Opt-out’.
Employer must inform staff of their right to Opt-out and how to Opt-out.
The employer must not give out or send out ‘Opt-out’ forms:
requests to ‘Opt-out’ must be handled by the scheme provider, and
completed forms would normally be sent to the employer.
A one calendar month Opt-out window starts on the later of two dates:
once the worker is an active member of the pension scheme, or
when the employer issues a notice of enrolment letter/ to the worker.
The worker will get a full refund of all contributions.
Early Opt-outs (before the Opt-out window starts) – are not allowed.
After the Opt-out window has closed, the worker may still request to cease
membership of the pension scheme (under the scheme rules).
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

30. Communicating to workers
At staging, employers will need to communicate* to all their workers,
(including existing pension scheme members).
Employers need to inform workers of their rights and whether they are being automatically enrolled or postponed.
The deadlines for communication are:
two months after staging; for existing scheme members, or
within six weeks for all other communications.
Communications must be sent directly to the individual (eg by letter, , HR web portal).
We have provided example ‘template’ letters, which may be customised.
* See our planning tool and ‘communicate to staff’
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

31. Re-enrolment
The re-enrolment date is every three years from the employer’s
staging date.
However, an employer may choose to move their re-enrolment date to any day, up to 3 months before, or after, the third anniversary.
The employer will need to continue to assess any workers they are monitoring* every pay reference period.
In addition, any person who, on the re-enrolment date:
is not an active member of a qualifying scheme, and
has opted out or ceased membership more than 12 months ago ...
 will need to be re-assessed and, if an eligible jobholder, automatically enrolled.
* See our planning tool and ‘ongoing responsibilities’
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

32. Record-keeping
Employers must keep records* about their workers and the pension scheme used to comply with the employer duties (pension providers and trustees will also have duties to keep records).
An employer can use electronic or paper filing systems to keep or store
any records, as long as these records can be produced in a legible way.
Most records must be kept for six years. Those that relate to opting out must be kept for four years.
The records must be provided to The Pensions Regulator, on request.
We can conduct an inspection, if we have reasonable grounds to do so (for example, this may be as a result of a whistleblower alert).
* See planning tool and ‘keep records’
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

33. Declaration of compliance (registration)
Employers must complete a declaration of compliance (registration)
The deadlines are:
five months after the staging date and
two months after every re-enrolment date.
Employers may receive a penalty fine if they do not complete their
declaration on time.
Employers will need to provide certain details, for example:
which pension schemes were used to comply with the duties, and
the number of eligible jobholders automatically enrolled into each scheme.
All postponements applied at the staging date must have come to an end
before the declaration can be completed.
You can start the online process early and partially complete your declaration.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

34. Any questions?
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

35. Useful links Staging date tool:
Planning tool:
Questions to ask when selecting a new scheme provider
Letter templates for employers:
Information about declaration of compliance (registration):
Our detailed guides for employers and pension professionals:
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

36. Useful links continued…
More information about pensions and automatic enrolment:
The Association of British Insurers:
The National Association of Pension Funds:
National Employment Savings Trust:
Independent Financial Advisers:
The Pensions Regulator:
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

37. Thank you We are here to help! Contact us at:
Subscribe to our news by
Connect with us on LinkedIn:
Follow us on Twitter:
The information we provide is for guidance only and should not
be taken as a definitive interpretation of the law.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

38. Additional slides
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

39. DC self certification during phasing period
Up to
1st Oct 2017
1st Oct 2017 to 30th Sept 2018
From
1st Oct 2018
Pensionable Salary (Basis of
% Contributions)
Set 1
(Tier 1)
2% Employer
/ 3% Total
3% Employer
/ 6% Total
4% Employer
/ 9% Total
Scheme Definition
(if >= basic pay from £1)
Set 2
(Tier 2)
1% Employer
/ 2% Total
/ 5% Total
/ 8% Total
85% of Total Pay (scheme average)
Set 3
(Tier 3)
/ 7% Total
100% of
Total Pay
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

40. Summary of deadlines (for deadlines ending from 1 April 2014)
Action/Communication
Deadline
Letter to existing qualifying pension
scheme members at staging
2 months after staging
Letter to workers who are not already in a qualifying pension scheme at staging
6 weeks after staging
Joining window, enrolment notifications and transitional period notices
6 weeks from the assessment date (eg before midnight of Monday 12 May, if assessed Tuesday 1 April).
Opt-out window
1 month - from the latest of when:
the enrolment notification is issued, and
active membership is achieved.
Postponement notices
6 weeks from the day after the assessment date
(eg before midnight Tuesday 13 May, if assessed on Tuesday 1
April).
Complete declaration of compliance (registration) after
staging
5 months after staging
Complete declaration of compliance after re-enrolment
2 months after re-enrolment
Normal contribution payments to scheme provider
22nd day of the month following the month of deduction (19th day for non-electronic payments), may be earlier depending on the pension providers schedule.
New member contribution payments to scheme provider (for
all deductions made in first 3 months of membership)
22nd day (for electronic payments) of the first month, following a three month period starting the day active membership is effective (19th day for non-electronic payments) eg enrolments 2 January to 1 February = e-payment deadline is 22 May.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

41. What to communicate to workers
On staging, workers already members of a qualifying pension scheme must be provided with information* about the scheme.
Non-eligible jobholders and entitled workers must be provided with information* telling them about their right to Opt-in or join a pension scheme.
For eligible jobholders being automatically enrolled (and non-eligible jobholders being enrolled after opting in) they must be provided* with:
information about their enrolment,
what it means for them, including the contributions, and
their right to Opt-out.
Workers subject to a postponement need to be given key information* such
as the length of the postponement period and their rights to Opt-in or join.
* See Useful links for template letters
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

42. Automatic enrolment and Opt-outs
Window for possible Opt-out period
Joining window
Latest possible date Opt-out period ends (unless invalid Opt-out extends Opt-out period to 6 weeks)
Earliest possible date
Opt-out period ends
1 month
6 weeks
1 month
Earliest possible start date
for 1 month Opt-out period
Backdating of scheme membership to the automatic enrolment date
Latest date by which active membership and provision of jobholder information and enrolment information must be achieved and therefore the latest possible start date for 1 month Opt-out period.
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

43. Timescales for postponement at staging
Assessment date/ automatic enrolment date
(for eligible jobholders)
Staging date
Latest date by which active membership and provision of jobholder information and enrolment information must be achieved.
Opt-ins could be received from this date
Joining window
Postponement notices must be issued by this date (for staff postponed on the staging date)
Up to 3 months postponement
Backdating of scheme membership to the automatic enrolment date
6 weeks
6 weeks
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

44. Opt-in – one calendar month pay reference period
Staging date
Latest date by which active membership and provision of jobholder information and enrolment information must
1st
1st
Joining window
be achieved.
Earliest Opt-in enrolment date
(for monthly paid jobholders)
Backdating of scheme membership to the enrolment date
1 month PRP
1 month PRP
6 weeks
Opt-in request received in this period
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

45. Opt-in – one tax month pay reference period
Staging date
Latest date by which active membership and provision of jobholder information and enrolment information must
1st 6th
Joining window
be achieved.
Earliest opt-in enrolment date
(for monthly paid jobholders)
Backdating of scheme membership to the enrolment date
5th 6th
1 month PRP
1 month PRP
5th 6th
6 weeks
If opt-in request is received in this period (1st to 5th inclusive, if not past payroll cutoff)
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

46. Issue letter to worker and set up active membership
Staging date
Monthly pay reference period (PRP)
Key:
C – Payroll cutoff
R – Payroll run
P – Payday
Scenario A Assessment date on first day of PRP
1st
31st 1st
30th 1st
31st
March
April
28th
28th
May
28th C R P0 C R P1 C R P2
Staging and a calendar month PRP
Opt-out
window could start
Pay reference period runs from 1st
to last day of each month
Assessment date is 1 April
Total qualifying earnings may not be known until payroll cutoff or later.
Total QE
paid in PRP
> earnings trigger ? No
Issue letter to worker and set up active membership
If the worker needs to be automatically enrolled:
No statutory duty to enrol
First deduction needs to made
in payday P1 on 28 April
Opt-out window may not start until after deduction taken
Scheme contribution based on 100% of May pensionable pay.
Yes
Automatic enrolment triggered
UK worker
aged 22 to SPA? No
Yes
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

47. Issue letter to worker and set up active membership
Monthly pay reference period (PRP)
Staging date
Scenario B Assessment date on 1st day of month
Key:
C – Payroll cutoff
R – Payroll run
P – Payday
6th
5th 6th
1st 5th 6th
5th
Feb
March
28th
April
28th
28th C
R P0 C
R P1 C
R P2
Staging with a tax month PRP
Opt-out window could start
Pay reference period runs from 6th day to 5th day of each month
Assessment date on 1 April (ie the staging date) is after the March payday P1 on 28 March
Total qualifying earnings (in PRP 6 March to 5 April) assessed using old tax year earnings thresholds.
Total QE paid in PRP
> earnings
trigger ? No
Issue letter to worker and set up active membership
No statutory duty to enrol
If the worker needs to be automatically enrolled (from 1 April):
Yes
First deduction needs to made
in the next payday P2 on 28 April
Opt-out window could start
before first deduction taken
Contribution based on scheme rules (eg for a legal min scheme, based on
Automatic enrolment triggered
UK worker aged 22 to SPA? No
100% of April’s qualifying earnings).
Yes
DM v3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.