Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work. It is being implemented in stages. Eligible jobholders will be automatically enrolled into the workplace pension scheme, if they are not already active members of a workplace pension scheme that meets a set of minimum standards. The employer must make pension contributions to the pension scheme and the worker may also have to contribute. Workers who do not want to join the scheme may opt out for a three year period. However, employers are required to continue automatically enrolling eligible workers who have opted out, every three years. Eligible jobholders are workers who:
- Are aged between 22 and state pensions age;
- Earn over the earnings threshold – currently £10,000 per year;
- Work, or ordinarily work in the UK, and have a contract of employment (i.e. so is a worker and not a self-employed contractor), or who have a contract to provide work and/or services personally (so can’t sub-contract to a third party).