As part of our monthly payroll provision we provide pension services through the government pension scheme NEST.
All employers have a legal obligation to open a scheme for eligible employees who wish to join a pension scheme. If your employees are not eligible to start a pension scheme you still have certain obligations to The Pension Regulator.
Who can join a scheme
Entitled worker – is aged 16 and 74, has earnings at or below the national insurance lower limit (for 2017/18 £490 per month or lower). An entitled worker is allowed to join their employer’s pension scheme if they wish, but their employer is not obliged to make contributions.
Non-eligible jobholder – is aged between 16 and 74 and has earnings between the lower earnings threshold and what The Pension Regulator calls the earnings trigger for auto enrolment (for 2017/18 £490 – £833 per month), or aged between 16 and 21 or over 74 and has earnings above the automatic enrolment earnings threshold £10,000.
Non-eligible workers are entitled to join their employer’s pension scheme if they wish to but are not entitled to receive pension contributions to their scheme made by their employer.
Eligible jobholder – is aged between 22 and 74 and has earnings above the earnings threshold (over £833 per month for 2017/18).
Employers must make pension contributions for eligible workers unless the individual opts out of auto-enrolment. The employee must also make contributions unless they have opted out.
The employer and employee must make a minimum 1% contribution up until the 5th April 2018. After this date the contributions increase to employer contribution 2%, employee contribution 3%. The percentage rates continue to rise over time and changes again from 6th April 2019 to employer minimum contribution 3% and employee contribution 5%.
Please get in touch if you wish to find out additional information or use the contact form and we’ll be happy to setup and operate your pension provision along with your payroll requirements.