On 1 January 2023, the regulation regarding automatic resumption of Employee Capital Scheme contributions will take effect. Such resumption is to occur every four years.

It will apply to those who have previously opted out of saving in the ECS, unless they submit a new declaration. 

Since the regulation regarding resumption of contributions will take effect on 1 January 2023, the expiration of the four-year period specified therein should be determined as of 2023.

Consequently, the first automatic enrolments should not take place until 2027. The State Development Fund, however, takes a different view, consistently maintaining that the first resumption will take place as early as in 2023. 

In connection with the mechanism for automatic resumption of ECS contributions in 2023, employers are obliged:

• by the end of February 2023 - to inform ECS participants who have previously submitted declarations of opting out from saving in an Employee Capital Scheme to make ECS payments for them again from 1 April 2023;
• from 1 April 2023 - to start making payments to the ECS for those who do not re-submit their declaration on opting out from making payments to the ECS.

Find more in the PRO HR October 2022.