When postponement is used
Postponement can be used for one employee, a group of employees or an entire workforce, and can begin:
- On your staging date
- On the first day of employment
- If an employee turns 22 or their earnings increase to meet the minimum earnings threshold for auto enrolment
You don’t need to let The Pensions Regulator or your pension provider know if you’re using postponement, but you do need to write to the affected employees to let them know six weeks from the start of the postponement period.
It’s important to note that employees who have their assessment for auto enrolment postponed still have the right to opt in to your workplace pension scheme during the postponement period.
How postponement works
If you decide to use postponement, the first thing you’ll need to do is decide on your deferral date, which is the last day of the postponement period.
Once you’ve done that, the next step is to issue a postponement notice. This will need to let all employees affected by postponement know that auto enrolment has been postponed, along with the date when they’ll be assessed. It must also tell employees the auto enrolment criteria that they’ll be assessed by, as well as let them know that they have the right to opt-in before their assessment date. You must make sure you send this within six weeks of the original assessment date.
The final step is to make sure that you assess your staff when the postponement period ends. All eligible jobholders must be auto-enrolled, and if an employee is eligible then further periods of postponement can’t be applied.
Find out more about auto enrolment
Auto enrolment doesn’t have to be challenging. We’ve got all the information you need to get up and running with your workplace pension scheme.