Informing Staff of Their Pension Rights


As an employer you have a legal duty to inform new workers in writing of their rights to a work pension at the right time. This applies to all workers as even the ones that do not qualify may still have the option to join.


Workers fall into these categories in the 2021-22 tax year


AE (Automatically Enrolled)

  • If they are aged between 22 and the state pension age, plus are earning more than £10,000.

  • You are required to automatically enrol them into your workplace pension scheme. Workers can then opt-out by directly contacting the scheme.


Non-eligible jobholder (Opt-in)

  • Aged 16 to 21 or are in the state pension age, plus earn above £10,000. Or

Aged


  • 16 to 74 and earn between £6,240 to £10,000.

  • They do not require to be automatically enrolled, but if they ask to opt in, you must enrol and make contributions for them.


Workers without qualifying earnings (WWQE)

  • Aged 16 to 74 and earning £6,240 or less.

  • You need to enrol them if they ask to join. You do not have to make contributions.


When to inform your Staff

This should be a part of the workers joining process. However, you are entitled to postpone the start date by using the postponement process. This allows you to delay the new worker joining the scheme by up to 3 months.


Inform your worker within 6 weeks of them joining that you are using postponement, by providing them with a postponement notice.


Further Help

Charterwells are on hand to provide you with a service to manage this for you and also setting up a scheme for the 1st time. We can also help you with the declaration and re-declaration of your compliance duties to the pension regulator.

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