Pension Auto-Enrolment

All employers are required to automatically enrol eligible jobholders into a suitable pension scheme and fund a minimum level of pension savings (without reducing pay or benefits elsewhere). At least 8% of qualifying earnings must be paid into the pension scheme, with a minimum employer contribution of 3%.

In this Inbrief we explain the rules, exceptions and employer duties.

Inside

• What is auto-enrolment?

• Who is eligible?

• Opting in and out of the scheme

• Employers' existing pension arrangements

• Taxation

• Employers' duties

• Enforcement and penalties

• Practical steps

What is auto-enrolment?

Auto-enrolment is a requirement for employers to automatically enrol all "eligible jobholders" in a suitable pension scheme (imposed under the Pensions Act 2008). Provided certain "quality" conditions are satisfied, the employer's existing occupational pension scheme (or a personal pension scheme into which the employer