Auto-enrolment/Re-enrolment

Auto-enrolment was introduced by the Pensions Act 2008, and is aimed at encouraging more people to save for their retirement.

The University has a legal obligation to undertake cyclical re-enrolment approximately every three years after the initial staging date of 1 May 2013. The University will be undertaking its first cyclical re-enrolment exercise on 1 July 2016. The assessment will cover all workers who are not in a pension scheme, and follow the procedure, as set out below, to ensure the University complies with its duties to reenrol those workers into the pension scheme. Individuals can opt out if they wish. The assessment will exclude those who have opted out in the 12 months prior to 1 July 2016.

Summary of the Legislation

The University must assess each 'worker' to identify who meets the definition as described in the legislation, categorise each worker, and undertake the necessary duties accordingly.  Please note that the legislation only applies to those who work, or ordinarily work, in the UK.

The legislation defines a ‘worker’ as an individual who:

  • workers under a contract of employment (an employee), or
  • has a contract to perform work or services personally and is not undertaking the work as part of his/her own business (a non-employee).

 Workers are then categorised as: 

  • Eligible Jobholders,
  • Non-eligible Jobholders, or
  • Entitled Workers. 

Further details, in relation to each of these, are summarised in the table below. 

Categories of Workers and University’s Duty 

Category of Worker

Definition

University’s Duty

Eligible Jobholder

  • Earns at least £833* per month, and
  • Aged between 22 and state pension age.

 

  • Automatically enrol into a pension scheme.
  • Contribute to the Eligible Jobholder’s pension.

Non-eligible Jobholder

  • Earns at least £833* per month, and
  • Aged between 16 and 21 or between state pension age and 74,
  • or,
  • Earns between £486* and £833* per month, and
  • Aged between 16 and 74.
  •  Provide information about the Jobholder’s right to opt in to a pension scheme.
  • If the Jobholder opts in then the University will make a contribution.
  • If the Jobholder does not opt in to a pension scheme, the University will repeat the assessment process monthly.

Entitled Worker

  • Earns below £486* per month, and
  • Aged between16 and 74.
  •  Provide information about the Worker’s right to join a pension scheme.
  • If the Worker joins a pension scheme, no employer contribution is required.
  • If the Worker does not join a pension scheme, the University will repeat the assessment process monthly.

*These figures are based on 2015/16 rates and are subject to change by the Government.

A few key points 

  1. If you are an employee who is already an active member of one of the University’s pension schemes (i.e. USS, RBP or HSC), this legislation will not affect you. 
  2. If you are an employee who is not a member of one of the University’s pension schemes, and you meet all the following criteria:
    • earn at least £833 per month (based on 2015/16 rates),
    • are aged between 22 and state pension age, and
    • work, or ordinarily work, in the UK,

              you will be automatically enrolled/re-enrolled into a workplace pension scheme.

  3. For those who are non-employees, including students, casual workers, tutors, demonstrators, invigilators and external examiners, the University is required, by law, to enrol you into a scheme if you meet the criteria above.  Please note that if you are paid £833, regardless of the period over which this payment relates to, you will be automatically enrolled into a pension scheme.
  4. The legislation does not apply to agency workers, inward secondees or self-employed contractors.

 

Frequently Asked Questions for employees

 

Frequently Asked Questions for non-employees