All your questions about auto enrolment, answered.
What is auto enrolment?
It is a way of encouraging more people to save for their retirement. The government made it law for all companies to automatically enrol employees into a pension scheme. It means that if you’re eligible you’ll only be asked if you want to opt out rather than if you want to join.
Who is eligible for auto enrolment?
If you’re between age 22 and below State Pension Age and earning more than £10,000 a year then you will be automatically enrolled into a pension plan. You’ll sometimes see this referred to as being an ‘eligible jobholder’.
What does it mean for me?
It means that if you’re eligible you’ll be automatically enrolled into the Plan if:
- You're new to the Group and you didn't join the main Plan within your first three months of employment, or
- You're an existing employee who has either previously opted out of the Plan, or were previously ineligible to join because of your age or earnings level.
If you're automatically enrolled, the contributions paid into your pension have to add up to a total amount set out by the Government and you can find out how much this is by going to the 'How much to pay in' page.
You can join the main Plan where you'll have a choice of contribution rates by completing an Application Form. Even if you're not eligible for auto enrolment, you can still join the Plan in this way.
Do you have enhanced or fixed protection?
If you have built up pension savings above the Lifetime Allowance and have enhanced or fixed protection, then you may lose this protection if you are auto enrolled. If you have this protection, make sure you take appropriate action so you don’t lose it.