Auto enrolment/re-enrolment
To help people save for their retirement the Government requires all employers in the UK to automatically enrol their workers into a workplace pension if they meet certain requirements. This is known as automatic- enrolment and already happens in the LGPS, with most new employees automatically joining the Scheme when they commence employment. Scheme members are able to opt-out of the LGPS at any time if they want to.
Under automatic-enrolment if you are not already a member of the LGPS, you will automatically join the Scheme at the point in the future that you:
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have a contract of employment of three months or more;
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earn over £10,000 a year (or pro-rata pay period);
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are age 22 or over; and
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are under State Pension age.
If you are automatically enrolled, you can choose to leave the LGPS by opting-out at any time. You can also View details of the different categories of worker and how they are impacted by automatic-enrolment
Already a member?
If you are already a member of the LGPS automatic enrolment will not affect you as you are already a member of a qualifying pension scheme. However, you may be affected if you change jobs or take on another job in the future.
Each employer will have its own date set for when it must comply with automatic enrolment. As a result you need to contact your own employer in order to find out the actual date when it must comply with the automatic enrolment requirements.
Auto enrolment Q&A
An employer has to apply automatic enrolment of workers into a workplace pension arrangement from its 'staging date'. This is the date that has been allocated to them by the Pensions Regulator and is set according to the number of people it employs. As a result not all LGPS employers will have the same 'staging date'. You will need to contact your own employer to find out when it must comply with automatic enrolment, if it hasn't already done so.
The aim is to encourage people to save towards their retirement and have enough income to enjoy it. The full new State Pension in 2020-21 is £175.20 a week. This is designed to be a foundation and is unlikely to be enough for most people when they retire.
Assuming that you meet the criteria then the answer would be Yes.
The law requires all employers to automatically re-enrol their workers into a workplace pension every three years if they meet certain requirements. All workers can join the pension scheme at any time if they want to. If you meet the criteria you may be put back into the LGPS even if you have previously decided that being a member is not right for you. If you are automatically enrolled, you can choose to leave the LGPS by opting-out at any time.
Yes. If you would like to join the LGPS and you are under age 75, you can do so at any time, regardless of how much you earn or the length of your contract. Please contact your employer if you wish to join or re-join the LGPS.
Categories of worker
In the following table you can find out about the different categories of worker and how you may be affected under the automatic-enrolment rules.
| What type of worker are you? | How will automatic enrolment impact you? | |
|---|---|---|
|
Age 22 or over; and You earn over £10,000* a year (or pro-rata in any pay period); Are under State Pension age. |
Eligible jobholder | You will be automatically enrolled in the LGPS. |
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You are 22 years or over but Your earn between £6,240* and £10,000* a year (or pro rata in any pay period). |
Non eligible jobholder |
You will not be automatically enrolled into the LGPS, but you can still join by contacting your employer. If you do not join, you will be automatically enrolled in the LGPS if you become an 'eligible jobholder' in the future. |
| You do not meet any of the requirements above. | Entitled worker |
You will not be automatically enrolled into the LGPS, but you can still join by contacting your employer. If you do not join, you will be automatically enrolled in the LGPS if you become an 'eligible jobholder' in the future. |
* These are the pay limits as at April 2021, they are subject to change each April. If you are unsure of the pay limits then you should contact your employer.