Auto enrolment FAQs

Is everyone being enrolled into a workplace pension?

The University’s next re-enrolment date is 1 April 2025 and from that date we need to enrol into a workplace pension workers who:

• Are not already in a qualifying workplace scheme;
• Are aged 22 or over;
• Are under State Pension age;
• Earn more than a minimum amount, currently £10,000 a year (£833.33 per month) and
• Work or usually work in the United Kingdom on an open ended or fixed term contract

I meet the criteria, when will I be enrolled?

If you meet the criteria above you will be enrolled into a workplace pension scheme in that month.

I don’t meet the criteria, will I be enrolled?

If you don’t meet the criteria above you will not be automatically enrolled into a scheme.

You may if you wish join a workplace pension even if you don’t meet the criteria however you will need to complete an application form to join if you want to do this.

Why is this happening?

The aim is to help more people have another income, on top of the State Pension, when they retire.

The State Pension is a foundation for your retirement. If you want to have more, you need to save during your working life. Otherwise you may reach retirement facing a significant fall in your standard of living.

The full State Pension from April 2024 is £221.20 per week however not everyone will receive this amount. You can check what this means for you on the Department for Work and Pensions website at https://www.gov.uk/new-state-pension. The Government is getting employers to enrol their workers automatically into a pension at work so it is easier for people to start saving.

Who will pay into the pension?

You will pay into it. The University will pay into it. Plus the government will pay into it in the form of tax relief. This means some of your money that would have gone to the government as tax goes into your pension instead.

What will I get from my workplace pension when I retire?

That depends. If you are automatically enrolled into NEST or choose to opt into NEST the amount you receive when you retire will depend on the growth of your fund during your period of membership.

If you are graded UE01-5 or equivalent and you elect to join the Staff Benefits Scheme you can find out more about the benefits that would be payable upon retirement by referring to the SBS Scheme Guide.

What if I leave the University?

If you are contributing to NEST and your new employer also contributes to NEST you will simply continue to make contributions to your account.

If you are contributing to USS and your new employer is a USS employer you will simply continue to make contributions to that scheme.

If you are contributing to SBS your membership of SBS will cease upon your employment with the University. You will however have the right to transfer the value of the benefit you have built up in SBS to your new employer’s scheme should you wish.

I am paying into a personal pension already, what should I do?

It is 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.

If you meet the eligibility criteria for auto enrolment the University will automatically enrol you into the relevant workplace pension.

What if I can’t afford to pay into a pension?

The University has introduced NEST as its auto enrolment scheme for those employees on grades UE01-5 or equivalent. This is a low cost alternative to the Staff Benefits Scheme.

As well as your own contribution the University will also pay into your pension pot and you will get a contribution from the government in terms of tax relief.

I’m too young to start thinking about pensions, aren’t I?

It may seem early to start planning for later life, but remember you could have twenty years of retirement and you will need an income. A workplace pension is one way to provide that income. Usually the younger you are when you start paying into a pension the better as the money has more time to grow. So, even if it’s only a small amount, the money you put away early in life can build up over time.

Is it too late for me?

Being in a workplace pension is worth considering, even if you think you’re too old. Unless your retirement is just a few weeks away, there is still time to build up some money.

Unlike other ways of saving, being in a workplace pension means you’re not the only one putting money in. The University contributes too and most people will also get a contribution from the Government through tax relief.

I want to opt out of auto enrolment. When do I get my contributions refunded?

If you opt out within the opt out period your contributions will normally be refunded in your next month's pay.

For example, if you are automatically enrolled into a pension scheme in March and a contribution has been deducted from your March pay this will normally be refunded to you in your April pay as long as you complete and return your opt out form within the statutory opt out period.