Auto enrolment information sessions

1. Auto enrolment information sessions Sophie Draper HR Business Centre Manager May 2013

2. Objectives for the session • Gain an understanding of auto enrolment legislation • Understand the implications of the changes to our 2 main schemes – Teachers Pensions and Local Government Pension Scheme • Understand what this means for you and any processes which need changing

3. What is auto enrolment? • Statutory legislation introduced from 01 October 2012 • Designed to increase the number of pension paying into an occupational scheme • Phased implementation depending on size of organisation from 01 October 2012 until 2018 • CYC staging date was 01 April 2013

4. Who is affected by auto-enrolment? All workers who are: • Age 22 or over and • Under State Pension Age and • Earn at least £9,400 per annum and • Work in the UK • If you have previously opted-out, must be re-enrolled every 3 years • This group are called ‘eligible’ workers

5. Auto enrolment terms • 3 types of workers • Eligible • Non-eligible • Entitled • All eligible workers must be auto-enrolled into a qualifying pension scheme • Both LGPS and Teachers Pension are qualifying scheme and we already enrol all new starters • Non-eligible and entitled have the right to join a pension scheme at any time

6. Auto enrolment criteria

7. Communication with employees • Following the staging date, all employees must be given information about pensions • Anyone being auto enrolled must be provided with information on enrolment, including their contributions and their right to opt out • Those existing employees who are not eligible jobholders must be told how they can opt in to a scheme

8. Communication with employees • All new employees must receive the appropriate letter on starting employment • There is specific information that each type of employee must receive • There are deadlines for communicating the required information to employees

9. Decisions CYC have made about auto enrolment • Transitional delay – CYC have decided that anyone who is an eligible worker and has previously opted out will not be re-enrolled until April 2017 • Postponement - for casuals eligible to join LGPS only we will delay auto enrolment for 3 months • Using aggregated earnings per month, not per position

10. Opting out and refunds • Employers must not induce or coerce employees to opt out or not join the pension scheme • Once an employee has been auto enrolled, they have 3 months to opt out and receive a refund of their contributions. There is no discretion to refund after 3 months • Employees cannot opt out before they commence employment or before they are auto-enrolled • Employers cannot provide opting out forms

11. Changes to LGPS and Teachers Pensions • Upper age limit extended to 75 • Employees with a contract for less than 3 months and casuals can now opt to join the LGPS • TP – employees can now choose to opt in for one post and opt out of another. Previously had to opt in or out of all posts • Teachers who already have a full time post and pay pensions must be auto enrolled into the LGPS for their additional posts

12. What does this mean for you? • Limited impact initially as we currently contractually enrol everyone into either the LGPS or Teacher Pensions Scheme • Financial implications • Make sure your contract/offer paperwork does not refer to opting out • Do not give employees an opt out form. If they ask you can let them where to find the opt out form

13. What does this mean for you? • Timely submission of paperwork • Only have 3 months to opt out (backdated to start date) • Regular submission of timesheets as earnings trigger is based on monthly pay (£787) • Need to give all new LGPS starters an employee PEN11 with the offer paperwork • Ensure your pension paperwork is up to date

14. Any questions?

15. Useful web addresses Pension Regulator www.thepensionsregulator.gov.uk Department for Work and Pensions www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/ North Yorkshire Pension Fund www.nypf.org.uk Teachers Pension www.teacherspensions.org.uk