This article explains the ongoing automatic enrolment processes after staff have been assessed: postponement, opting out, opting in and joining, cyclical re-enrolment, the declaration of compliance, choosing a scheme, taking on new staff, record-keeping and penalties, for the 2026 to 2027 tax year. A companion article covers who must be enrolled and how much to contribute.
Can I delay enrolling staff using postponement?
Yes. Postponement lets you delay assessing and enrolling a member of staff for up to three months from a chosen date, such as the duties start date, the day a new employee joins, or the date an existing worker first becomes eligible. It is commonly used to avoid enrolling staff on short-term contracts or who are unlikely to remain past probation, and to align enrolment with a regular payroll date. During the postponement period you do not assess the member of staff or pay contributions, but you must write to them within six weeks of the postponement start date to tell them enrolment has been postponed and explain their right to opt in during that period. At the end of the period you must assess the member of staff on that day, and if they are then an eligible jobholder you must enrol them from that date with no further delay. Postponement can only be applied at these specific trigger points and cannot be used at cyclical re-enrolment.
How does opting out work, and when is a refund due?
After you have automatically enrolled an eligible jobholder, they have the right to opt out, but only during the one-month opt-out window. The window normally begins on the later of the date their active membership starts and the date they receive the letter telling them they have been enrolled, and it lasts one calendar month. If the member of staff opts out within the window, they must be treated as though they were never a member, and any contributions they and the employer have paid must be refunded in full. To opt out, the member of staff must obtain an opt-out notice from the pension scheme provider rather than from you, which protects against employers pressuring staff to leave. If a member of staff decides to leave after the window has closed, this is treated as ceasing membership rather than opting out, and the normal scheme rules apply: contributions already paid usually stay invested and are not refunded.
What is the difference between opting in and joining?
Opting in and joining are the two routes by which a member of staff who was not automatically enrolled can choose to be put into a scheme, and the route depends on the worker's category. A non-eligible jobholder has the right to opt in, and when they do you must enrol them into a qualifying scheme and pay the minimum employer contributions just as for an eligible jobholder. An entitled worker, who earns at or below the lower limit of the qualifying earnings band, has the right to ask to join a scheme, but in that case you are not legally obliged to make employer contributions, although you may choose to. In both cases the member of staff makes the request in writing and you must act on it. Because the two rights carry different employer obligations, identify correctly which category a requesting worker falls into before processing the request.
What is cyclical re-enrolment?
Cyclical re-enrolment is the requirement to put certain staff back into a pension scheme approximately every three years, even if they previously opted out or ceased membership. On your chosen re-enrolment date you must assess any eligible jobholders who, more than 12 months earlier, opted out, left the scheme, or reduced their contributions below the minimum, and re-enrol any who still meet the eligible jobholder criteria. You may choose your re-enrolment date from within a six-month window that opens three months before, and closes three months after, the third anniversary of your previous automatic enrolment or re-enrolment date. Re-enrolled staff have the same one-month opt-out window and the same right to a full refund as on initial enrolment, so re-enrolment does not trap anyone. Postponement cannot be used at cyclical re-enrolment, and after the exercise you must submit a re-declaration of compliance to The Pensions Regulator.
What is the declaration of compliance, and when must I submit it?
The declaration of compliance is an online form you submit to The Pensions Regulator to tell them how you have met your duties, and it is a legal requirement, not an optional confirmation. A new employer must complete it within five calendar months of their duties start date, providing details such as the number of staff assessed, the number enrolled, and the scheme used. Failing to submit on time is itself a breach that can lead to a penalty, even if you have correctly enrolled and paid for your staff, because The Pensions Regulator uses the declaration to verify compliance. After each cyclical re-enrolment you must submit a re-declaration, again within five calendar months of the third anniversary of your previous duties start date or re-enrolment date. Keep a record of your declaration and the information you used to complete it.
How do I choose a pension scheme?
You must use a scheme that is suitable for automatic enrolment, meaning it meets the qualifying scheme rules and is willing to accept all the staff you need to enrol without requiring them to provide extra information or take action. Many employers use the National Employment Savings Trust (NEST), a government-backed scheme set up specifically to support automatic enrolment, which has a public service obligation to accept any employer and is designed to be straightforward for smaller businesses. When choosing, consider whether it works with your payroll software, the tax relief method it uses (relief at source or net pay), the charges that apply to staff, the investment options and default fund, and the administrative support provided. The Pensions Regulator publishes guidance on what to look for, and you should satisfy yourself that the scheme is registered, well governed and able to handle ongoing duties such as processing opt-outs. The choice of scheme is the employer's responsibility.
What happens when I take on a new employee or become a new employer?
If you are a new employer taking on your first member of staff, your duties begin on the day that person starts work, and you must assess them straight away and act on the result, either enrolling them, recognising their right to opt in or join, or applying postponement. There is no staging date or preparation window, so have a scheme ready or be prepared to set one up quickly. When an existing employer takes on a new member of staff, assess that person on their first day and treat them according to their category, again with the option of postponing for up to three months. In all cases you must write to the new member of staff with the information relevant to their category within the statutory timescales, generally six weeks from the day the duty arises. The assessment must be repeated in every subsequent pay period as the person's age and earnings change.
What records must I keep, and for how long?
You must keep records that show you have met your duties, both to prove compliance to The Pensions Regulator and to administer the scheme correctly. These include the names and addresses of those you have enrolled, the gross earnings and contributions for each pay period, the dates contributions were paid into the scheme, any opt-in, joining or opt-out notices, and the pension scheme reference or registry number. Most of these records must be kept for six years, with the single exception of opt-out notices, which must be kept for four years. You can keep records electronically or on paper, and much of the information can come directly from your payroll system, but you must be able to produce them on request.
What penalties can The Pensions Regulator impose?
The Pensions Regulator has statutory powers to enforce automatic enrolment and generally takes an escalating approach that starts with education and warnings before financial penalties. If an employer fails to comply, it can issue a compliance notice requiring them to put things right by a deadline, and if that is ignored a fixed penalty notice of £400. Where non-compliance continues, it can issue an escalating penalty notice charging a daily rate, from £50 a day for the smallest employers up to £10,000 a day for employers with 500 or more staff, accruing until the employer complies. It can also issue an unpaid contributions notice requiring missed contributions to be paid, sometimes including the amount the worker should have paid, and in cases involving the employer safeguards it can take further enforcement action. Persistent or wilful non-compliance can ultimately lead to court action, so meet your duties on time and engage promptly if you fall behind.
Where can I check the current figures and detailed guidance?
The authoritative sources are GOV.UK and The Pensions Regulator at thepensionsregulator.gov.uk, which you should treat as definitive because the rules and figures are set by the Department for Work and Pensions and enforced by The Pensions Regulator rather than HMRC. For 2026 to 2027 the confirmed figures are an earnings trigger of £10,000, a qualifying earnings band of £6,240 to £50,270, a total minimum contribution of 8% of qualifying earnings with at least 3% from the employer, and eligibility from age 22 to State Pension age. Make sure your payroll software is configured with the correct thresholds and contribution method for your scheme, and verify the qualifying earnings upper limit against the National Insurance Upper Earnings Limit, which is also £50,270 for 2026 to 2027. For who must be enrolled and how much to contribute, see the companion article.