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AUTO ENROLMENT JARGON BUSTER It can be hard for the layman to make heads or tails of the jargon surrounding auto enrolment. Fortunately this handy jargon buster can help you learn the lingo Automatic enrolment

Qualifying scheme

A type of work-based pension that automatically enrols anyone who qualifies for the scheme. Often shortened to ‘auto enrolment’.

A pension scheme that meets or exceeds the contribution or benefit levels set by the government.

Staging date Staging is the staggered introduction of auto enrolment and the date your duties start. You can check your staging date on The Pensions Regulator’s website. Assessment Under auto enrolment regulations you need to work out who to put into a pension scheme. On your staging date, you have to work out how much each of your employees earn and how old they are. This will identify what you need to do. Contributions Paying money into a pension scheme is known as ‘making contributions’. You must pay money into the pension scheme on a regular basis. Contributions will be made by both the employer and the employee. Defined contribution scheme You need to examine whether or not your existing scheme qualifies for auto enrolment according to the rules set by the Department for Work and Pensions.


Phasing The government has set a minimum level of contributions that has to be put into a Defined Contribution Scheme by employers and workers. This minimum amount increases over five years in a phased start until all UK employers meet their obligations. Earnings basis This describes which basis of the employee’s earnings are used for calculating pension contributions. Contributions can be based on the standard components of pay – salary, wages, commission, bonuses and overtime, as well as statutory pay for sickness, maternity, paternity and adoption. Alternatively, you can use other definitions of earnings – find out more on The Pensions Regulator’s website. Employee data This includes your employee details and pension contribution amounts. You can transfer employee data to The People’s Pension by uploading a file – either manually or transferred automatically through your payroll software if it supports this. Alternatively you may be able to key in the data by hand.

What's next for auto enrolment? – sponsored by Sage  
What's next for auto enrolment? – sponsored by Sage