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Friday 24 November
My.Anglia > Student services > Careers > Eb > Pension Automatic Enrolment FAQs

Pension Automatic Enrolment FAQs

Workplace Pensions Were all in it.

What is Automatic Enrolment?

It is pension legislation (part of the Pensions Act 2008) that became effective on 1 October 2012. The government has introduced this new law to help people save more for their retirement.

The new legislation means every employer must enrol all eligible jobholders into a qualifying workplace pension scheme if they are not already in one. However, once you are enrolled, you can subsequently choose to opt-out.

Which qualifying workplace pension scheme is provided?

Anglia Ruskin Enterprise has chosen NEST as their workplace pension scheme. Details of NEST can be found at www.nestpensions.org.uk

Who is an eligible jobholder?

Any worker earning more than 10,000 per year gross pay (before any deductions) and aged 22 or over but aged under state retirement age is eligible to be automatically enrolled into NEST. Please note this figure is applicable to the 2017/2018 tax year and will be reviewed by the government each year.

Why should I be a member of a qualifying workplace pension scheme and whats in it for me?

State pension (currently 155.65 per week for a single person) is unlikely to provide you with enough income when you retire.

When did it begin?

Organisations have different dates at which they must begin automatic enrolment and these are called staging dates. Our staging date was 1 October 2013 although we decided to postpone our staging date for three months as permitted by the legislation.

What happened on 1 January 2014?

If you were an existing worker on 1 January 2014 and met the age and earnings criteria for Automatic Enrolment (i.e. your salary was more than £10,000 pa and you were aged between 22 and state pension age) you would have been automatically enrolled into NEST.

If you did not meet the age and earnings criteria for Automatic Enrolment (i.e. your salary was less than £10,000 pa or you were aged below 22 or above state pension age), nothing would have changed for you although you always have the right to opt in at any time if you are age between 16 and 74. However, should you meet the eligibility criteria in the future you will be automatically enrolled into NEST and a monthly contribution will be deducted from your pay. You have the right to opt out if you choose to do so.

What contributions will I have to make to the NEST workplace pension scheme and what contributions does Anglia Ruskin Enterprise make?

Minimum contribution rates are being phased in over the next few years, rising to 8% from October 2018. The table below shows how much you as an individual contributes as well as what ARE will contribute:

Dates

Your contribution

Our (ARE) contribution

Oct 2012 – Sept 2017

1%

1%

Oct 2017 – Sept 2018

3%

2%

Oct 2018 onwards

5%

3%

Will I receive more information about automatic enrolment?

Yes. We will write to you personally by letter and provide you with more information about automatic enrolment.

Will you notify me if I am automatically enrolled?

Yes we will, in writing, by letter.

What if I do not want to be enrolled into the scheme?

Workers who have been automatically enrolled into a pension scheme and those with qualifying earnings who have opted in have the right to opt out within one month of membership. When employers receive a member’s valid opt-out notice within the one month period, they must pay back any contributions deducted from the worker’s pay.

Can I opt out after one month of membership?

No, after the one-month opt-out period is over, members can’t opt out and get a refund, but they can stop contributing if they want. If they do this any contributions already paid, including those from their employer, will stay in the pension scheme.

Depending on your age retirement may seem ‘a life time’ away, but remember you may well need a significant pension when you retire to fund life style choices such as travel, holidays, hobbies etc. and it is unlikely that your state pension will provide enough income to meet the lifestyle you aspire to. Whatever your reasons for considering opting out of the scheme, we ask that you give this matter careful consideration before making a final decision.

You may wish to take financial advice before making a decision to opt out.

Where can I get an opt out form?

To opt out, you firstly need to be enrolled where you will receive a NEST ID. You can then opt out by:

  • Visiting www.nestpensions.org.uk/member-hub and follow the information on screen.
  • Calling NEST on 0300 020 0090 and follow automated instructions
  • Calling NEST on 0300 020 0090 and request a paper opt-out form to sign and return to NEST.

If I opt out, can I change my mind and opt back in?

Yes, you can – please contact your local Employment Bureau office. Please note that we must automatically re-enrol you every three years on the anniversary of the staging date (unless you opted out within 12 months of any re-enrolment date).

If I opt out, after I have been automatically enrolled into NEST, can I get my contributions back?

Yes a refund will be paid to you, but only if you opt out within one month of membership. Please refer to your members’ pack which you will receive from NEST.

Where can I find more information?

If you have a question that cannot be answered from the above information please contact the Employment Bureau at employment-bureau.anglia.ac.uk or by visiting your local office.

Updated June 2017

Contact the Employment Bureau

Email: employment-bureau@anglia.ac.uk

Phone
Chelmsford: 01245 68 3606
Cambridge: 01223 69 8456

Location
Chelmsford MAR Ground Floor
Cambridge HEL073

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