Pensions Reform - Detailed Guidance | Page 2

About this guidance • This guidance is aimed at employers and professional advisers who will support employers to comply with the new employer duties. • It contains essential information that will help them to ensure they are compliant with the new employer duties and safeguards. • This guidance is the third in a subset of guidance on the assessment of a worker. The process of making the assessment is described in Detailed guidance no. 3 – Assessing the workforce. In conjunction with this guidance, employers should also read the following guidance: –– Detailed guidance no. 1 – Employer duties and defining the workforce –– Detailed guidance no. 3 – Assessing the workforce –– Detailed guidance no. 4 – Pension schemes • If an employer chooses to use postponement to postpone automatic enrolment, in effect they postpone the assessment of their worker for a period of up to three months. An employer considering using postponement should read Detailed guidance no. 3a – Postponement. • We recognise that many employers will already have pension provision for their workers, and that this will often match or exceed the minimum requirements contained in the duties. • In these cases, such employers may just need to check that the minimum requirements are covered in their existing processes. • We have identified 7 steps to prepare for automatic enrolment, which summarise the main steps towards achieving compliance. Employers may find this helpful when navigating this guidance: www.tpr.gov.uk/7-steps • It will be helpful to employers to be familiar with the different categories of workers. These are explained in detail in Detailed guidance no. 1 – Employer duties and defining the workforce or a quick reminder is available in Key Terms on page 14. • This guidance has been updated as a result of The Department for Work and Pensions (DWP) publishing its consultation on proposed changes to staging dates, which identified the length of the transitional period. • Regardless of when the assessment is carried out, an employer will know, as a result of the assessment, whether the worker is an eligible jobholder, non-eligible jobholder or entitled worker. Detailed guidance no. 3c – Having completed the assessment describes the next steps for an employer once they have completed the assessment process. Employers should read 3c in conjunction with this guidance. 2 Detailed guidance no. 3b – Transitional period for defined benefit and hybrid schemes v4.0 ‘7 steps to prepare for automatic enrolment’ may be helpful