Done right, re-enrolment can be an auto-enrolment MOT

I know many colleagues from across the sector are thinking hard about them right now, as we are working out how best to support employers through their triennial re-enrolment process. I would guess any one of them will tell you this is not just a box to tick. 

Re-enrolment can be the start of the conversation that ends with employers choosing new ways to engage

Re-enrolment means employers need to re-enrol all their workers who have previously opted out of, or ceased being a member of, a qualifying pension scheme if they are an eligible jobholder on the employer’s auto re-enrolment date.

Some employers use it as a trigger to assess their approach and whether the provider they have chosen still makes sense.

Equally, as the technologies, strategies and systems supporting auto-enrolment are evolving rapidly, re-enrolment can be a chance to see if the pensions processes an employer has in place can be fine-tuned.

We recently contacted some employers to find out how the process went and what was helpful. Here are the three things they think you should know before helping your clients tackle re-enrolment. 

Re-enrolment works best when everyone knows what you are talking about

We all recognise that complex and unnecessary jargon can quickly stop people understanding how their pension scheme works, generating needless questions and slowing the whole process down. 

Nest’s research showed that more than half of respondents (57 per cent) said that sometimes the language used to describe pensions seemed so complicated they could not understand what the best option was for them.

One in three people (29 per cent of all respondents) were putting off thinking about saving for retirement because they found pensions confusing.

You can see how important it is that people know what you are talking about. Workers need to know what re-enrolment is and how it will affect them.

Companies want communication products for their workers that clearly explain the steps in the process and then signposted additional resources.

Make sure your clients are making best use of their scheme’s services

Since the introduction of auto-enrolment, the technology supporting the process just keeps improving as pension schemes have identified new ways to meet employers’ needs.  Re-enrolment could be a trigger to see if there are now more effective ways of connecting with your employers.

We did some research with smaller employers and noted that around two-thirds (64 per cent) were experienced in dealing with payroll issues, while less than a quarter (23 per cent) were experienced in dealing with pension issues.

We took this knowledge and developed Nest web services, a package that makes possible setting up a scheme, enrolling members and paying contributions directly through your payroll software. Many schemes have had a similar process of learning, adapting and improving.

Re-enrolment can be the start of the conversation that ends with employers choosing new ways to engage.

Make sure you are offering meaningful choices

Workers can opt out of a workplace pension for a lot of different reasons.

Equally, they may rethink their approach to saving and want their investments to be in a higher or lower risk category. Re-enrolment is a chance to engage with workers and give them clear options about their pension.

Re-enrolment may also be an opportunity for employers to look for a scheme that enables their workers to save in a way that matches their religious or ethical beliefs. 

Re-enrolment is a process every employer must go through, but it is also a chance to kick the tyres of your relationship with both your employers and their workers. 

Paul Budgen is director of business development at mastertrust Nest