From October 2012, employers will start to automatically
enrol all staff into a “qualifying workplace pension scheme”. This is being
done incrementally, with the biggest employers affected first. UNISON has
produced a briefing at www.unison.org.uk/acrobat/14625.docx which
explains what this involves, so please read it. Publicity material and bargaining and organising guidance will
be produced shortly, and the government has also started a publicity
campaign.
Pensions auto-enrolment provides branches with a massive
opportunity for recruitment and organising, especially in sectors where many
workers are not in a scheme.
The “at a glance” key points are as follows:
· All employees
paying income tax and aged between 22 and State Pension Age are
affected.
· From the 1
October 2012 the very largest employers will have to ensure that eligible staff
are automatically enrolled into a qualifying workplace pension
scheme
· By February
2018 all employers should be operating pensions auto-enrolment
· Most forms of
defined benefit pension schemes are qualifying schemes – as long as they are
open to new recruits. This includes the LGPS and NHSPS
· Employers
using a defined contribution pension scheme must pay “minimum contributions” -
1% for employers rising to 3% from October 2018. Employees initially pay 1%,
rising to least 5% (effectively 4% with tax relief applied) from October
2018
· Staff will
still be able to opt-out of the pension scheme should they wish
to
· Employers will
have to automatically re-enrol eligible staff into a qualifying pension scheme
at 3 yearly intervals
· The Local
Government and NHS Pension Schemes will remain the default qualifying schemes
for staff potentially eligible to join them
· Employers must
register their qualifying schemes with the Pensions Regulator and inform staff
of pensions auto-enrolment. They must not encourage staff to opt-out or
discriminate against staff who join a scheme (or those who decide not
to).
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