Are you ready for automatic enrolment?
The countdown is well and truly on to the launch of the Trust’s new pension scheme The People’s Pension on 1 April 2014. You should all have seen the communication over the past few months, on your noticeboards and with your payslips, but here are just a few final reminders about what is going to happen next and why!
The Government has introduced a law to help make it easier for people to save for their retirement. It means that all employers must provide a company pension that meets certain standards and automatically enrol eligible employees into the pension if they’re not already members. We’ve chosen to offer The People’s Pension as our workplace pension scheme to meet our employer duties and help you put money aside for your retirement. The People’s Pension is a straightforward pension scheme that gives you one retirement pot for life. Even if you are not eligible for automatic enrolment, you still have the option to join a company pension. This could be a great way to start building up your savings for retirement. Because, when you save into a company pension, you could also get extra payments from us and tax benefits from the Government. How will I know if I am eligible? You will be eligible for automatic enrolment if you: • • • •
Are not already a member of the company pension Are aged over 22, but under state pension age Earn at least £9,440* a year (£787 a month or £182 a week) (* from 6 April £10,000) Work, or usually work, in the UK
If you meet all of these criteria on 1 April 2014, you are eligible, and you will join The People’s Pension. They will write to you to confirm that you have been joined. You don’t need to do anything. How does it work? When you become a member of the company pension, you’ll pay in a minimum amount every month. Your first payment will be taken on 15 April 2014 On top of this we will also make payments into your company pension as follows: You pay 1.0% of your earnings between £5,668 and £41,450* Trafford Community Leisure Trust will pay 1.0% of your earnings between £5,668 and £41,450* Total paid into your company pension = 2.0% of your earnings between £5,668 and £41,450 How payments are made Payments to your pension are taken from your salary before tax and national insurance have been deducted. This will happen automatically – you don’t need to do anything. What if I don’t want to stay in the company pension? The People’s Pension will write to you to confirm that you have been auto-enrolled and are a member and explain the steps to take if you don’t want to stay in.