Pensions automatic enrolment

Transcription

1 Pensions automatic enrolment Definitions... 1 What is automatic enrolment?... 1 Does it affect me?... 2 When will this affect me?... 2 What workplace pension scheme will I be enrolled in?... 2 What s in it for me?... 2 I am already in a workplace pension scheme. Will I get a letter?... 3 I m paying into a personal pension already, what should I do?... 3 I had a workplace pension in a previous job, what should I do about that?... 3 I don t want to be in a workplace pension scheme. Do I have a choice?... 3 I have lifetime allowance fixed protection on my pension savings and do not want to be opted in to any pension scheme because of the tax implications If I opt out, can I get a refund on any contributions I ve paid?... 4 If I opt out, can I change my mind and opt back in?... 4 I ve already opted out of the pension scheme. Will I be enrolled back in?... 4 I am with Unitemps. Am I affected?... 4 Where else can I get advice?... 4 Definitions Automatic enrolment date: the date you are automatically enrolled into a workplace pension scheme (1 July 2013 in most cases). Workplace pension scheme: Within DMU, this will either be the Local Government Pension Scheme (LGPS) for professional services staff, or the Teachers Pension Scheme (TPS) for academic staff in the majority of cases. In a small number of cases, workers will be a member of the Universities Superannuation Scheme (USS). All DMU s current pension schemes meet or exceed the government s new standards and are therefore qualifying schemes for automatic enrolment. What is automatic enrolment? The government has introduced a new law designed to help people save more for their retirement. It requires all employers to enrol their workers into a workplace pension scheme if they are not already in one. The aim is to help more people have another income, on top of the State Pension, when they retire.

2 Does it affect me? You will be eligible for automatic enrolment if the following applies to you: You are employed by De Montfort University (if you are with Unitemps see FAQ below) You are not already in a workplace pension scheme You are aged 22 or over You are under State Pension age You earn more than 9,440 a year (this figure may change each April), and You work, or usually work, in the UK. If this doesn t apply to you, then you won t be eligible for automatic enrolment. You can however opt in to a workplace pension scheme at any time. Example: If you are under 22 years old on 1 July 2013, you will not become a member of a workplace pension scheme automatically. However, you have the right to join the pension scheme if you want. When will this affect me? You will shortly receive a letter informing you if you are affected and if so, your automatic enrolment date. For most DMU workers who are eligible for automatic enrolment, the automatic enrolment date will be 1 July In some cases, automatic enrolment will be postponed until a later date. Your individual letter will explain if, how and when you will be affected. What workplace pension scheme will I be enrolled in? If you are a member of professional services staff the workplace pension scheme is the Local Government Pension Scheme (LGPS). If you are an academic staff member, the workplace pension scheme is the Teachers Pension Scheme (TPS). See also Definitions What s in it for me? When you pay into your pension, De Montfort University and the government will too. DMU will contribute between 14-16% of your salary and the government contributes in the form of tax relief. Paying into a workplace pension is a hassle-free way of saving while you earn and means you can continue to enjoy the things you like when you retire. You could have 20 years+ of retirement average life expectancy is increasing, and living longer means a longer retirement to fund. The state pension is a foundation for your retirement, but you may want more.

3 Starting sooner means your pension will be bigger - the earlier you start, the more time your money has to grow. Starting sooner also makes saving more manageable saving smaller amounts over a longer time period has less impact on your current lifestyle. Even if you re not being automatically enrolled into a workplace pension, you can still ask to join. I am already in a workplace pension scheme. Will I get a letter? Yes. All DMU workers will get a letter explaining if, how and when the new law will affect them. If you are already in a workplace pension scheme eg LGPS or TPS, you will simply continue to be a member of that scheme and you don t need to do anything. If you are with Unitemps see FAQ below. I m paying into a personal pension already, what should I do? It s possible to have both a workplace pension and your own personal pension, so you could choose to continue paying into both. Or you might choose to continue with just one of them. It depends on your circumstances. If you re considering this question, The Pensions Advisory Service might be a good place to start. See Where else can I get advice? I had a workplace pension in a previous job, what should I do about that? You could leave it where it is, ask for a refund, or transfer it to another pension scheme eg your DMU pension scheme, depending on the scheme rules. If you want to transfer it into your DMU pension, you need to check whether that s possible with the pensions team within the first few months of joining the scheme. See Where else can I get advice? If you have lost track of a pension, the government s Pension Tracing Service could help provide you with the contact details for that pension. Website: I don t want to be in a workplace pension scheme. Do I have a choice? You do have a choice. If you are automatically enrolled into a workplace pension scheme and you do not wish to remain in that scheme, you can opt out. You can t opt out before you are automatically enrolled but you can do so at any time afterwards if you wish.

4 Anyone who opts out or stops making payments will be automatically enrolled back into the pension scheme at a later date (usually every three years). This is because your circumstances may have changed and it may be the right time for you to start saving. You can opt out again if it s still not right for you. I have lifetime allowance fixed protection on my pension savings and do not want to be opted in to any pension scheme because of the tax implications. The current rules on automatic enrolment do not allow someone to opt out in advance of being automatically enrolled. However, if you opt out within the opt out window - which is within one month of being opted in - you are treated as never having been in the scheme and, as long as you opt out in time, this will not impact on your lifetime allowance fixed protection. This won t apply to the vast majority of people because most people will not have pension savings worth more than the 1.5 million lifetime allowance. However, if you have any concerns about how this might impact on you, please speak to a member of the payroll and pensions team. If I opt out, can I get a refund on any contributions I ve paid? Yes. In order to get a full refund you will need to opt out within three months of your automatic enrolment date. If I opt out, can I change my mind and opt back in? Yes. You can opt in at any time. I ve already opted out of the pension scheme. Will I be enrolled back in? If you have previously opted out of either the LGPS or the TPS then you will not be enrolled back in on 1 July You will be eligible for automatic enrolment in the future but this will not be until You can however choose to opt in at any time. I am with Unitemps. Am I affected? If you are a Unitemp you will not be affected by automatic enrolment in July 2013 and will not receive a letter. The automatic enrolment date for Unitemps is May Where else can I get advice? You can contact payroll and pensions on payrollpensions@dmu.ac.uk You can also contact the university s Employee Assistance Programme provided by First Assist (Please type DMU into both the Access Code and Password login boxes whichbrings you to FirstAssist Online).

5 The Pensions Advisory Service is an independent voluntary organisation which provides free information about pensions: Website: If you would like advice on how to manage your money, you might find the Money Advice Service a good starting point. Website: