Auto enrolment and Re-enrolment
Details of pension scheme auto enrolment.
Auto Enrolment – What is it?
The Pensions Act 2008 requires that employers assess their employees for enrolment into a workplace pension scheme should the employee satisfy certain eligibility criteria. Most new employees will now be enrolled into a qualifying pension scheme when they become eligible jobholders under the legislation. Employees will become eligible jobholders if they are between age 22 and State Pension Age and earn at least £833 per month. The exception to this are those employees employed on casual contracts who will be postponed from assessment for enrolment until month three of employment. Employees who are enrolled into a workplace pension scheme are entitled to opt out of that scheme at any time. However to receive a refund of the contributions paid in, the employee must opt out within a set timeframe (one month for those enrolled into NEST and three months for those enrolled into USS). Also, every three years employers must re-assess their workforce and re-enrol all eligible employees who have previously opted out of pensions saving, back into a workplace pension scheme should they satisfy the age and earnings eligibility criteria. The next re-enrolment date for the University of Edinburgh is scheduled to be April 2025 and any employee who has opted out, regardless of the date of opt out, will be re-assessed and if eligible, re-enrolled back into a workplace pension scheme at that time.
The National Employment Savings Trust
Employees in grades UE01-UE05 or equivalent will be auto enrolled into the National Employment Savings Trust (NEST).
NEST is a new Government established pensions scheme which has been provided for in the Pensions Act. NEST is a low cost pension scheme which attracts low charges and is portable (once an individual is a member they can contribute to their pension ‘pot’ regardless of employment status or employer within the UK).
More details on NEST and the scheme benefits can be found on the National Employment Savings Trust website.
National Employment Savings Trust website
Employees in grades UE01-UE05 or equivalent will have the option to join the University of Edinburgh Staff Benefits Scheme as an alternative to NEST at any time should they wish. More details on SBS are available on the Pensions website.
Employees in grades UE06-UE10 or equivalent will in the main be auto enrolled into USS. There is one exception to this - re-employed USS pensioners and flexible retirals will be auto enrolled into NEST.
More details of the USS scheme and benefit structure are available on the Pensions website.
Where can I find out more?
If you want to know more about the Pensions Act 2008 or auto-enrolment more generally please visit the Department for Work and Pensions website, the Pension Regulator website and the NEST website.