Pensions Act 2011

4 Automatic re-enrolment where scheme membership interrupted

(1) In section 2 (continuity of scheme membership) of the Pensions Act 2008 (“the 2008 Act”) for subsection (3) substitute—

“(3) Subsection (1) is not contravened if by virtue of section 5 the jobholder becomes an active member of an automatic enrolment scheme with effect from—

“(a) the day after the cessation referred to in paragraph (a) or (b) of subsection (1), or

(b) a day within the prescribed period (if a period is prescribed).””

(2) In section 5 of the 2008 Act (automatic re-enrolment) after subsection (1) insert—

“(1A) This section also applies to a jobholder who—

(a) is aged at least 22,

(b) has not reached pensionable age, and

(c) is not an active member of a qualifying scheme because there has been a period beginning at any time after the jobholder’s automatic enrolment date during which the requirements of section 1(1)(a) or (c) were not met (so that the person was not a jobholder for that period).

(1B) This section also applies to a jobholder who has ceased to be an active member of a qualifying scheme because of something other than an action or omission by the jobholder.”

(3) For subsection (4) of that section substitute—

“(4) Regulations may provide for subsection (2) not to apply in relation to a jobholder who in prescribed circumstances—

(a) has ceased to be an active member of a qualifying scheme because of any action or omission by the jobholder, or by the employer at the jobholder’s request, or

(b) is treated as not being an active member of a qualifying scheme because the jobholder has given notice under section 8.”

(4) In subsection (8) of that section omit “, after the automatic enrolment date,”.

(5) In section 6 of the 2008 Act (timing of automatic re-enrolment) in subsection (4)—

(a) in paragraph (a) omit “at any time after the jobholder’s automatic enrolment date,”;

(b) in that paragraph omit “or a qualifying scheme of which the jobholder is an active member ceases to be such a scheme”;

(c) in paragraph (b) omit “or the employer”;

(d) in paragraph (c) for “time” substitute “event”.

(6) In section 54 of the 2008 Act (inducements)—

(a) in subsection (1)(a) for “within the period prescribed under section 2(3)” substitute “with effect from—

(i) the day after the membership is given up, or

(ii) a day within the prescribed period (if a period is prescribed)”;

(b) in subsection (1)(b) for “within the period prescribed under section 2(3)” substitute “with effect from—

(i) the day on which the jobholder became an active member of the scheme to which the notice relates, or

(ii) a day within the prescribed period (if a period is prescribed)”.