Commentary on Sections PART 1 – Pension Scheme Membership for Jobholders CHAPTER 1 – Employers’ Duties Section 4: Postponement of automatic enrolment
Section 3 establishes that the effective date of automatic enrolment must be the first day on which the jobholder becomes eligible. Section 4, however, provides for the possibility of delaying initial automatic enrolment in circumstances prescribed in regulations. The period of permitted deferral will be established in regulations.
Employers that are permitted to delay automatic enrolment may be required to ensure that members remain in such a scheme for a prescribed period of time, unless the jobholder leaves that employment or chooses to leave the scheme. This will enable the member to make up pension savings foregone during the initial delay period.
Section 4 will operate as part of the ongoing duty and not just during the implementation period.