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Local Government Pension Scheme Automatic Enrolment Overview 14/11/2011

Local Government Pension Scheme Automatic Enrolment Overview 14/11/2011 Janet Caiazzo – Pensions Manager. Main pillars of Workplace Pensions Reform. Automatic enrolment to tackle inertia, being phased in from October 2012:

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Local Government Pension Scheme Automatic Enrolment Overview 14/11/2011

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  1. Local Government Pension Scheme Automatic Enrolment Overview 14/11/2011 Janet Caiazzo – Pensions Manager

  2. Main pillars of Workplace Pensions Reform Automatic enrolment to tackle inertia, being phased in from October 2012: Employers must automatically enrol all eligible workers into a pension scheme that meets quality requirements Minimum employer contributions to give employee incentives *NEST scheme to ensure a suitable pensions saving product for all *LGPS remains the default qualifying scheme for our employees

  3. Key Automatic Enrolment Duties From their “staging date” employers will have a duty to: Automatically enrol eligible workers into a qualifying scheme Non-eligible Jobholders have the right to Opt in to a qualifying scheme Need to communicate to all workers, even those in a qualifying scheme

  4. Key Automatic Enrolment Duties From their “staging date” employers will have a duty to: Maintain records for up to 6 years Applies to staff who “ordinarily work” in the UK under a worker’s contract Need to continuously monitor age and earnings post-staging date

  5. Staging Dates for Large Employers

  6. PAYE References & Staging Dates Staging Date to be set based on HMRC data on 01/04/2012* * This still applies even if employer status or PAYE size changes after this date Where multiple PAYE schemes used by an employer, staging determined by their largest PAYE reference (do notadd PAYE numbers together).

  7. PAYE References & Staging Dates Employers may make their staging date earlier but not later Total number of people in each PAYE counted for Staging Date purposes, even those receiving a pension

  8. Assessing your work force * SPA = State Pension Age

  9. Assessing your work force LGPS current admission provisions override Auto Enrolment requirements LGPS regulations will be changed to meet “Auto-enrolment” requirements Employers must however make arrangements to re-enrol eligible employees at 3 year staging dates

  10. Assessing your work force Non scheduled LGPS employers (eg Housing Associations) can offer more than one qualifying scheme

  11. Opting-out / Re-enrolment Employer MUST give staff information on how to Opt-out, but should not give out Opt-out Forms 1 Month Opt-out window, which starts after becoming an active member -Early Opt-outs are invalid (although 2 weeks added to Opt-out window) -Late Opt-outs – normal scheme rules apply

  12. Opting-out / Re-enrolment Automatic Re-enrolment on 3 year anniversary of employer’s STAGING - except any job holders who have Opted out in preceding 12 months Option to move re-enrolment date up to 3 months before, or after, the third anniversary of the staging date

  13. Automatic Enrolment & Monitoring All eligible job holders must be automatically enrolled: • On the employer’s staging date • When they join an employer (post staging) • When they become eligible for the first time (post staging) If an employer chooses to enrol staff who are not eligible job holders, normal scheme rules apply

  14. Automatic Enrolment & Monitoring Employers must still monitor workers’ age & earnings (every pay period) and automatically enrol any worker if / when they become eligible job holders This includes any staff who “opt out” when they were not eligible job holders

  15. Questions?

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