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Auto enrolment Again :( - Non-eligible jobholders

Auto enrolment Again :( - Non-eligible jobholders

Didn't find your answer?

First of all, I apologise as I am sure this has been covered before, I just can't find it.

I am just trying to refresh my knowledge on this as staging dates get closer!

I spoke with the pensions regulator and they advised something that was different from my recollection from here:

If a company with a director (no contract of employment) has one other employee, and that employee is:

An entitled worker: No AE scheme has to be in place.  Ok, they have to be asked if they want to join a scheme, but this can be any scheme.

A non-eligible Job Holder:  Again no AE scheme has to automatically be in place. If they opt in, the employer has 6-weeks to get a scheme in place.

Is this correct?

My understanding from previous aweb posts was if there was an employee, a scheme had to be in place, end of.  Am I wrong and the regulator right? I hope so!

Thanks in advance for replies

Replies (5)

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By rjoconnor81
03rd Dec 2015 12:52

Don't confuse a pension scheme and complying with the Pension Regulations.  As I understand, they are correct and an actual pension scheme doesn't need to be in place in the above situations, but you must still send all the letters and complete the Declaration of Compliance.


Thanks (3)
By Henry Tapper
03rd Dec 2015 13:19

Not your fault- Regulator has changed its position

The Pension Regulator was originally keen for all employers staging AE to have a scheme in place, even if they had no one to auto-enrol. This has changed and (unlike what happened with stakeholder pensions) there is no need for employers to set up shell schemes. If things change and you have someone wanting to opt-in or you have someone who becomes eligible , you need to move sharpish!

Thanks (3)
By Kazmc
03rd Dec 2015 13:47


Hi Henry

But don't you have to take a deduction from the next available payrun? If that is the case then you could be leaving yourself wide open to not being able to get a scheme in place in time, especially with thousands upon thousands of scheme applications being generated by the 'main three'?

We also have the added headache that we cannot produce communications or do assessments within our payroll system without scheme references in place, and its a main payroll system provider so not sure if we have a choice but to set empty shell schemes up?

Thanks (1)
By chewmac
07th Dec 2015 21:32

No scheme
I understand that no scheme is required but still must do comms + DoC and repeat every three years. Another little compliance fee to burden small businesses.

Thanks (1)
By JCresswellTax
08th Dec 2015 09:22

Thanks for the replies and confirming my thoughts.

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