Auto enrolment

The Government legislation on Workplace Pension Reform means employers have an obligation to auto enrol their employees into qualifying pension schemes and make an employer contribution towards it.

The Pensions Regulator has issued guidance on the duties for employers under the Pensions Act 2008.

The main things they must do are:

  • provide a qualifying scheme for workers
  • automatically enrol all “eligible jobholders” into the scheme
  • pay employer contributions for “eligible jobholders” to the scheme
  • tell all eligible jobholders that:
    • they have been automatically enrolled
    • they have the right to opt out if they want to do so
    • register with the Pension Regulator and give details of the qualifying scheme and the number of people automatically enrolled.

From July 2012, employers mustn’t:

  • encourage workers to opt out of the qualifying pension scheme
  • have recruitment practices that’ll benefit job applicants who indicate they’re prepared to opt out
  • treat a worker unfairly or put them at a disadvantage because of automatic enrolment.

The Pension Regulator provides a series of guidance and interactive tools designed to assist all UK employers in understanding and complying with their Workplace Pensions Reform responsibilities. There is information on automatic enrolment on the Pension Regulator's website.