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Pension re-enrolment

Cyclical Re-enrolment is the process that states that every three years you must re-assess, and if needed, re-enrol certain employees into an automatic enrolment pension scheme.

On your re-enrolment date, Payroll will re-assess employees who have previously been assessed for automatic enrolment and;

  • Have been eligible jobholders at some point since you staged for automatic enrolment.
  • Opted out of your pension scheme.
  • Ceased active membership of your pension scheme.
  • Stayed in your pension scheme but chose to reduce the level of pension contributions to below the minimum level required for automatic enrolment.

Payroll will then re-enrol Eligible Jobholders who have left your automatic enrolment pension scheme more than 12 months before your re-enrolment.

However there are certain steps you must take outside of Payroll to fulfil your duties to your employees and to The Pensions Regulator (TPR).

You can find detailed guidance about putting workers back into a pension scheme from TPR’s website.

There are four steps to cyclical re-enrolment;

1. Choose your re-enrolment date

  • You must choose a date that falls within a six-month window.
  • The six-month window starts three months before your third anniversary of your original staging date and ends three months after it.
  • Any subsequent cyclical re-enrolment date and six-month window is then based on previous cyclical re-enrolment activity.

You may want to align the cyclical re-enrolment date with other key dates in your business or avoid any seasonal peaks which may result in an influx of new members.

If you only have one pay frequency, you may also want to consider choosing a re-enrolment date that is the first day of a pay reference period to avoid pro rata pension contributions.

Once you have chosen your re-enrolment date, you can enter it into Payroll by following the below steps;

  • 1. Click Summary.
  • 2. Under Cyclical Re-enrolment, click Set Re-enrolment Date.
  • 3. Select your re-enrolment date.

You cannot amend your re-enrolment date after you process your next pay run. for further support please contact technical support.

2. Assess and re-enrol eligible employees

When you reach your re-enrolment date and process your next pay run, Payroll will automatically assess and re-enrol relevant employees.

  • 1. Click Process Pay Run. The following message appears;
  • 2. Continue the pay run up until to the Edit Pay stage. The below message will appear for any employees who meet the criteria to be re-enrolled;
  • 3. Complete your pay run as normal and the affected employees are re-enrolled into the pension scheme they previously opted out of.

3. Write to employees you re-enrol

You must write to any employees that you re-enrol within six weeks of your re-enrolment date.

Templates of these letters can be found on TPR’s website

4. Complete your re-declaration of compliance

You must tell TPR how you’ve met your legal duties for re-enrolment by completing your re-declaration of compliance. You must do this within five months of the third anniversary of your staging date.

You must complete an online form to tell TPR how you have met your legal duties.

Read more about Automatic Enrolment

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