AE commentary 2014-2015

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Completed declarations of compliance Postponement Employers can choose to defer the process of assessing their workforce for automatic enrolment purposes for a period of up to three months 12 . This doesn’t mean postponing their staging date, which is set in law, or the declaration of compliance deadline, which is five months from their staging date. Over the year, approximately half of employers have chosen to use postponement (Figure 6). The majority of these are medium employers as they are the ones who have staged during the year, and when they have used postponement, they have almost all elected to postpone for the full three month period (Figure 7 overleaf). From July 2012 to March 2015, 51.7% (23,704) of employers elected to use postponement. Of these, 19,095 have used it over the past financial year, representing 54.6% of employers declaring their compliance Declarations in 2014-15. without postponement Declarations with postponement Figure 6: Monthly postponement rates Yearly average postponement rate 100% Percentage of declarations 80% 60% 40% 20% 0 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Declarations without postponement Declarations with postponement Yearly average postponement rate 12 More information can be found at www.tpr. gov.uk/docs/detailedguidance-3a.pdf. Automatic enrolment Commentary and analysis: April 2014 – March 2015 20
Completed declarations of compliance Figure 7: Length of postponement period used 5.2% 7.2% 7.9% 0-1 months: 1,369 (7.2%) 1-2 months: 1,514 (7.9%) 2-3 months: 15,211 (79.7%) More than 3 months: 1,001 (5.2%) 79.7% DB transitional arrangements Employers with eligible jobholders who are to be put into a DB scheme or the DB section of a hybrid scheme can apply a transitional period to any or all of these jobholders, and may therefore choose to delay automatic enrolment for them to 30 September 2017. 1,222 employers reported that they had these arrangements in place when they completed their declaration, an increase of 381 from the same figure to the end of March 2014. The relative low volume in the period aligns with our assumption that fewer employers will be using DB/hybrid transitional arrangements as we move through the staging profile and as smaller employers stage. Automatic enrolment Commentary and analysis: April 2014 – March 2015 21
Page 1 and 2: July 2015 Automatic enrolment Comme
Page 3 and 4: Foreword Welcome to the third editi
Page 5 and 6: employer percentage Executive summa
Page 7 and 8: Introduction Automatic enrolment Au
Page 9 and 10: Introduction Figure 1: Proportion o
Page 11 and 12: Awareness, understanding and engage
Page 19: Completed declarations of complianc
Page 23 and 24: Completed declarations of complianc
Page 25 and 26: Pension schemes used for automatic
Page 27 and 28: Compliance and enforcement Cases Wh
Page 29 and 30: Compliance and enforcement Main imp
Page 31 and 32: Eligible jobholders choosing to opt
Page 33 and 34: Forthcoming trends and challenges F
Page 35 and 36: Forthcoming trends and challenges O

AE commentary 2014-2015

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