Management Information Sheet
Workplace pensions reform
Auto enrolment
New legislation aimed at encouraging people to save more for their retirement, came into force in October 2012.
The new law requires all employers to automatically enrol employees into an appropriate pension scheme, providing they meet certain criteria in respect of age and earnings.
What is auto enrolment?
The new legislation is intended to encourage everyone to prepare for their retirement by saving towards their pension. All employees meeting minimum age and earnings criteria will have to be automatically enrolled in a pension scheme by their employer.
When will the change take place?
Auto enrolment was introduced nationally from 1 October this year, but the effective date is different for each employer depending on the number of people on their payroll. The effective date for Norfolk County Council is 1 February 2013.
However, as the vast majority of NCC employees are already members of a pension scheme and others would have had the opportunity to join a pension scheme when they started working for the Council, it has been decided to take up an option within the legislation to delay auto enrolment for most employees until October 2017.
Does this date apply to all schools?
If you work in a Community or Voluntary Controlled School, as a Norfolk County Council employee the effective date will be the same as for all County Council employees.
If you work in a Foundation or Voluntary Aided School that uses the County Council's payroll system, then you will also have the same effective date as County Council staff.
What happens next?
If you are already a member of a pension scheme, the new legislation will not affect you, but you will receive a letter in January 2013 to confirm your membership - this is something that the law requires all employers to do.
If you are not currently a member of a pension scheme then what happens next depends on how old you are, and how much you earn.
For teachers, regardless of earnings, then auto enrolment will be delayed for you until October 2017, as you would have been able to join the Teachers Pension Scheme as part of your employment. You will be receiving a letter in January that explains this for you. You can, of course, join the pension scheme at any time before October 2017 if you wish.
For school support staff, if you are 22 or over, but under your state pension age, and earn more than £8,105 a year then auto enrolment will be delayed for you until October 2017, as you would have been able to join the Local Government Pension Scheme as part of your employment. You will be receiving a letter in January that explains this for you. You can, of course, join the pension scheme at any time before October 2017 if you wish.
All other members of school support staff are able to join a pension scheme at any time, but the Council is required to monitor age and earnings during every pay period to see whether you hit either an age or earnings trigger that means you will have to be auto enrolled into a pension scheme. The County Council is not able to use the option to delay.
For instance, if your hours increase so that your pay becomes more than £8,105 a year, you will automatically be enrolled in a pension scheme. You will be able to opt out, but not before you have been auto enrolled and deductions have been taken. Again, you will receive a letter in January explaining all your options.
What are the benefits of joining a pension scheme?
Whether a teacher or a member of the school's support staff being a member of a pension scheme means:
Where can I find out more?
More information about pensions for Norfolk County Council employees can be found on the following websites:
For teachers: www.teacherspensions.co.uk
For support staff: www.norfolkpensionfund.org
You can also look on Schools PeopleNet where you will find the answers to many Frequently Asked Questions.
New legislation aimed at encouraging people to save more for their retirement, came into force in October 2012.
The new law requires all employers to automatically enrol employees into an appropriate pension scheme, providing they meet certain criteria in respect of age and earnings.
What is auto enrolment?
The new legislation is intended to encourage everyone to prepare for their retirement by saving towards their pension. All employees meeting minimum age and earnings criteria will have to be automatically enrolled in a pension scheme by their employer.
When will the change take place?
Auto enrolment was introduced nationally from 1 October this year, but the effective date is different for each employer depending on the number of people on their payroll. The effective date for Norfolk County Council is 1 February 2013.
However, as the vast majority of NCC employees are already members of a pension scheme and others would have had the opportunity to join a pension scheme when they started working for the Council, it has been decided to take up an option within the legislation to delay auto enrolment for most employees until October 2017.
Does this date apply to all schools?
If you work in a Community or Voluntary Controlled School, as a Norfolk County Council employee the effective date will be the same as for all County Council employees.
If you work in a Foundation or Voluntary Aided School that uses the County Council's payroll system, then you will also have the same effective date as County Council staff.
What happens next?
If you are already a member of a pension scheme, the new legislation will not affect you, but you will receive a letter in January 2013 to confirm your membership - this is something that the law requires all employers to do.
If you are not currently a member of a pension scheme then what happens next depends on how old you are, and how much you earn.
For teachers, regardless of earnings, then auto enrolment will be delayed for you until October 2017, as you would have been able to join the Teachers Pension Scheme as part of your employment. You will be receiving a letter in January that explains this for you. You can, of course, join the pension scheme at any time before October 2017 if you wish.
For school support staff, if you are 22 or over, but under your state pension age, and earn more than £8,105 a year then auto enrolment will be delayed for you until October 2017, as you would have been able to join the Local Government Pension Scheme as part of your employment. You will be receiving a letter in January that explains this for you. You can, of course, join the pension scheme at any time before October 2017 if you wish.
All other members of school support staff are able to join a pension scheme at any time, but the Council is required to monitor age and earnings during every pay period to see whether you hit either an age or earnings trigger that means you will have to be auto enrolled into a pension scheme. The County Council is not able to use the option to delay.
For instance, if your hours increase so that your pay becomes more than £8,105 a year, you will automatically be enrolled in a pension scheme. You will be able to opt out, but not before you have been auto enrolled and deductions have been taken. Again, you will receive a letter in January explaining all your options.
What are the benefits of joining a pension scheme?
Whether a teacher or a member of the school's support staff being a member of a pension scheme means:
| your employer makes a contribution to your pension as well as you, | |
| pension benefits that increase with the cost of living, | |
| you will be able to receive retirement benefits from your normal pensionable age, according to the scheme rules, | |
| early payment of benefits if you have to retire due to ill health, | |
| life cover for yourself and your family. |
Where can I find out more?
More information about pensions for Norfolk County Council employees can be found on the following websites:
For teachers: www.teacherspensions.co.uk
For support staff: www.norfolkpensionfund.org
You can also look on Schools PeopleNet where you will find the answers to many Frequently Asked Questions.