Every three years, under the pension regulations, PAYE schemes have to be re-assessed to ensure they are compliant. Any employee who has opted out (unless they have done so within the last twelve months) will be automatically re-enrolled. Pension contributions will show on the payslip.
The logic behind this is, the government thinks that people’s circumstances may have changed over three years and it prompts them to think again about pension provision as they grow older. Employees are entitled to opt out as before and if they do so within the first month, pension contributions are refunded.
A Re-Declaration of Compliance also has to be submitted to The Pension Regulator every three years. NannyMatters undertake the administration of this for you as part of the payroll service we provide, which takes the hassle away, and we write to you to let you know at each stage.
If things have changed and your nanny decides they do want to start a pension scheme then NannyMatters have a payroll and pension solution that takes care of all aspects of the new legislation, including those all-important employee communications. Our specialist software links directly with NEST, and many other pension providers. We charge £60 pa for our fully managed NEST pension solution.
You can find out more about Pension Re-enrolment here.