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Auto-enrolment

Auto-enrolment is new pension legislation, introduced by the Pensions Act 2008, which is aimed at encouraging more people to save for their retirement.

 This legislation will impact the University with effect from 1 May 2013.

 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:

  •  works 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 £787* 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 £787* per month, and
  • Aged between 16 and 21 or between state pension age and 74,
  • or,
  • Earns between £472* and £787* 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 £472* 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 2013/14 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 new legislation will not affect you. 

    2.   If you are an employee who is not already a member of one of the University’s pension schemes, and meet all the following criteria:

  • earn at least £787 per month (based on 2013/14 rates),
  • are aged between 22 and state pension age, and
  • work, or ordinarily work, in the UK,

          you will be automatically 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 will be required, by law, to enrol you into a scheme if you meet the criteria above.

Importantly, the University will postpone the date of the auto-enrolment assessment for all non-employees until 1 August 2013.  (Further information, including the definition of non-employee, can be found here: Frequently Asked Questions for non-employees.)

    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