- Automatic enrolment into workplace pensions will become mandatory for employers starting from October 2012, with requirements being phased in over 4 years. - Eligible employees who must be enrolled are aged between 22 and state pension age, earning above £7,475 per year. Employers must pay a minimum 3% contribution on qualifying earnings between £5,035-£33,540. - Employers can use the National Employment Savings Trust (NEST) pension scheme or their existing occupational schemes to meet these requirements. Employers will be provided guidance and support in complying with their new automatic enrolment duties.

6. The contract does not have to be in writing This may include agency workers All employees have the right to opt out of auto enrolment If they choose to opt out, after 3 years the auto enrolment process must be repeated There are a few exemptions, employer duties do not apply to these people: If the individual is the only person in a company Serving member of the naval, military or air forces of the Crown

7. Eligible jobholders Non-eligible jobholders Entitled workers

11. Minimum Contributions? The rules require minimum contributions to pension schemes including a payment from the employer The minimum contribution from an employer is 3% The employee contribution will receive tax relief E.g. Employee pays 4% and tax relief of 1% will be added. 5% in total The total can be made up entirely by the employer or paid by a combination of employee and employer Minimum Contribution 8% Employee Pays 4% Tax Relief 1% You Pay 3%

13. NEST NEST National Employment Savings Trust Established by Government Employers can use NEST National Employment Savings Trust It is aimed at those who don’t have a good quality pension scheme Option to use it as an entry level scheme for a particular group of workers

16. Case Study Sharon is 35 and earns £37,000 pa working as a Recruitment Consultant Sharon’s employer will be required to automatically enrol her into a workplace pension. Her employer will make a contribution of 3% of her earnings between £5035 and £33540. An annual contribution of £855 pa. Sharon will also make a contribution of 4% of band earnings. An annual contribution £1140 pa. She will receive tax relief (1%) £285 pa. Total contribution into her workplace pension will be £2280 pa.

17. Case Study Tom is aged 20 and is training to become an Electrician, he earns £15,000 pa Tom’s employer does not have to automatically enrol him. He can request to be enrolled. If he does his employer will have to make contributions to Tom’s pension.

18. Case Study Bob, an Accountant is 67, he earns £45,000 pa and is already a member of his company’s pension scheme Bob’s employer does not have to automatically enrol him. He is a non-eligible job holder. He can request to be enrolled. If he does his employer will have to make contributions to Bob’s pension.

19. Case Study Jan age 29 works in a private day nursery part time, she earns £75 per week Jan’s total yearly income is £3900 pa. This is below the threshold. Her employer will not have to automatically enrol her. She is an entitled worker. Jan can request her employer enrols her. If this was the case her employer would NOT have to pay any contribution, although they can if they wanted to.

21. Thank you Further information is available on request Contact: Julie Roche Cert PFS, Cert CII(MP) [email_address] Suite 26, Century Building Tower Street Brunswick Business Park Liverpool L3 4BJ 0151 707 8848