Automatic Enrolment for Pensions

Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work.  In the past many workers missed out on pension benefits either because their employer didn’t offer them a pension, or because they didn’t apply to join their company’s pension scheme.

Automatic enrolment changes this and it makes it compulsory for employers to automatically enrol their eligible workers into a pension scheme.  The employer must also pay money into the scheme.

Automatic enrolment is being phased in, starting with the largest UK employers. So if you are eligible and haven’t yet been enrolled into a work place scheme, you should be by 1st February 2018 at the latest.

To be eligible you must be:

A)    At least 22 years old.
B)    Not yet of State Pension age.
C)    Earning a salary of at least £10,000.00 p.a. (currently).
D)    Normally working in the UK under a contract of

ten pound note with word 'pension' on it

If your employer doesn’t have to enrol you by law, you can still join their pension scheme if you want to.  Your employer can’t refuse.
However, they don’t have to contribute if you earn these amounts or less:

•    £112.00 per week
•    £224.00 per fortnight
•    £448.00 per 4 weeks
•    £486.00 per month

Opting Out

Automatic Enrolment puts you into the scheme, but it is up to you if you wish to leave the pension scheme.  This is referred to as opting out. There are time limits for opting out and getting a return of your contributions.  It is possible to opt out at any time but your contributions and those of the employer will remain in the pension scheme.  If you do decide to opt out, it is important to remember that your employer will be required to put you back into the scheme every 3 years as long as you still meet the criteria.

To find out more how AMR can help you with auto enrolment call our team on 01892 559480. 


Article written by Samantha Shanks

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