{"id":26001,"date":"2015-05-05T09:03:58","date_gmt":"2015-05-05T08:03:58","guid":{"rendered":"https:\/\/www.wingatebs.com\/auto-enrolment-newly-exempted-employees\/"},"modified":"2015-05-05T09:03:58","modified_gmt":"2015-05-05T08:03:58","slug":"auto-enrolment-newly-exempted-employees","status":"publish","type":"post","link":"https:\/\/www.wingatebs.com\/auto-enrolment-newly-exempted-employees\/","title":{"rendered":"Auto Enrolment: Newly Exempted Employees"},"content":{"rendered":"<p>It became apparent quite early on that automatic enrolment would be inappropriate for employees in certain situations. Following a government\u00a0consultation aimed at\u00a0improving the Automatic Enrolment process, it was clear\u00a0there was a case for excluding employees from Auto Enrolment who:<\/p>\n<ul>\n<li>are leaving the employer<\/li>\n<li>have recently cancelled membership of a pension scheme<\/li>\n<li>have tax protected status on their existing pension savings<\/li>\n<\/ul>\n<p>As a result\u00a0from 1<sup>st<\/sup> April 2015 the Auto Enrolment legislation was changed so that an employer is no longer\u00a0required to enrol these employees even though they may be eligible. Further detail is provided below:<\/p>\n<p><strong>Employees leaving employment<\/strong>\u00a0\u00a0<strong>\u00a0<\/strong><\/p>\n<p>If an employee is\u00a0on notice to leave employment an employer can choose whether or not to enrol that employee at any time up to 6 weeks after the requirement to do so arises; the process can also be stopped if notice is given after an employee becomes\u00a0eligible but before they\u00a0have\u00a0been auto enrolled.<\/p>\n<p>If notice is withdrawn for any reason, the Auto Enrolment requirements will need to be fulfilled\u00a0effective from the date of the withdrawal.<\/p>\n<p><strong>Employees who have recently cancelled\u00a0membership of a pension scheme\u00a0 <\/strong><\/p>\n<p>Some employees may have joined\u00a0the employer&#8217;s\u00a0pension scheme when they first started work and subsequently cancelled their membership, only to be re-enrolled again once the employer reached it Auto Enrolment &#8216;Staging Date&#8217;.<\/p>\n<p>Now, if an employee cancels their company pension scheme membership <strong>within 12 months<\/strong> of the date they are to\u00a0be\u00a0auto enrolled, the employer does not need to enrol that employee until its next re-enrolment date.<\/p>\n<p><strong>Individuals with tax protected status <\/strong><\/p>\n<p>An employee may\u00a0have claimed\u00a0a pension-related protected tax status on their existing pension savings which requires\u00a0no future pension contributions to be made; Automatic Enrolment therefore puts these arrangements at risk.<\/p>\n<p>Previously the only option available to these employees was to opt out, but if that wasn\u2019t done within the statutory time limit, it could have lead to their protected\u00a0pension status being lost, which could in turn give rise to\u00a0significant tax charges.<\/p>\n<p>The Government has now removed the requirement for these employees to be automatically enrolled, so preventing the risk of them losing their valuable protected pension status.<\/p>\n<p><strong>If you would like any\u00a0further information on these changes and how they may affect you or on Auto Enrolment in general\u00a0please contact us on 0844 406 0027<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It became apparent quite early on that automatic enrolment would be inappropriate for employees in certain situations. Following a government\u00a0consultation aimed at\u00a0improving the Automatic Enrolment process, it was clear\u00a0there was a case for excluding employees from Auto Enrolment who: are leaving the employer have recently cancelled membership of a pension scheme have tax protected status [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[41],"acf":[],"_links":{"self":[{"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/posts\/26001"}],"collection":[{"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/comments?post=26001"}],"version-history":[{"count":0,"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/posts\/26001\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/media?parent=26001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/categories?post=26001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wingatebs.com\/wp-json\/wp\/v2\/tags?post=26001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}