I have a client who will be paying a bonus to an employee, who at staging (2016) was not earning enough to be auto enrolled into a work placed pension and continues to be non-eligible. At the end of this month, this employee will recieve a bonus which will take them into the Auto Enrolment bracket, but as it is a one off, the employer is proposing to postpone enrolment for a month, then the following month the employee will revert to their normal pay.
Originally, when I spoke to the pension company, they informed me that I could not postpone unless this person was a new starter, which I knew was wrong advice, so I confirmed with the Pension Regulator that they could indeed be postponed. Due to this, I feel wary about what they are now telling me in the following paragraph.
The pension company have told me that I will need to set up a seperate worker group within the scheme, so that this person is highlighted as being different to the rest (because they have been postponed during employment rather than at the beginning of employment). In this way they say, if there ever was an investigation by HMRC/Pensions Regulator, this employee would be seen to have been postponed, as their higher pay in the year could highlight they should have been enrolled when just looking at the total figures.
Is this seperate worker group really necessary? Has anyone else had any experience of this, that could advise?
Thanks in advance.