1. Local Government Pension Scheme Automatic Enrolment Overview
14/11/2011
Janet Caiazzo – Pensions Manager

2. Main pillars of Workplace Pensions Reform
Automatic enrolment to tackle inertia, being phased in from October 2012:
Employers must automatically enrol all eligible workers into a pension scheme that meets quality requirements
Minimum employer contributions to give employee incentives
*NEST scheme to ensure a suitable pensions saving product for all
*LGPS remains the default qualifying scheme for our employees
Pay cut - must take place after 1 April 2008

3. Key Automatic Enrolment Duties
From their “staging date” employers will have a duty to:
Automatically enrol eligible workers into a qualifying scheme
Non-eligible Jobholders have the right to Opt in to a qualifying scheme
Need to communicate to all workers, even those in a qualifying scheme
Pay cut - must take place after 1 April 2008

4. Key Automatic Enrolment Duties
From their “staging date” employers will have a duty to:
Maintain records for up to 6 years
Applies to staff who “ordinarily work” in the UK under a worker’s contract
Need to continuously monitor age and earnings post-staging date
Pay cut - must take place after 1 April 2008

5. Staging Dates for Large Employers
Size of Largest PAYE
Staging Date
01/10/2012
50000 –
01/12/2012
01/01/2013
01/02/2013
10000 – 19999
01/03/2013
8000 – 9999
01/04/2013
4100 – 5999
01/05/2013
4000 – 4099
01/06/2013
3000 – 3999
01/07/2013
2000 – 2999
01/08/2013
01/09/2013
800 – 1249
01/10/2013
01/11/2013
01/01/2014
01/02/2014
Pay cut - must take place after 1 April 2008

6. PAYE References & Staging Dates
Staging Date to be set based on HMRC data on 01/04/2012*
* This still applies even if employer status or PAYE size changes after this date
Where multiple PAYE schemes used by an employer, staging determined by their largest PAYE reference (do not add PAYE numbers together).
Pay cut - must take place after 1 April 2008

7. PAYE References & Staging Dates
Employers may make their staging date earlier but not later
Total number of people in each PAYE counted for Staging Date purposes, even those receiving a pension
Pay cut - must take place after 1 April 2008

8. Assessing your work force
Age / Inclusive earnings
16 -21
22 – SPA*
SPA* - 74
Up to £7475
Non eligible job holder
Over earnings trigger for auto enrolment (£7,475)
Eligible job holder
Pay cut - must take place after 1 April 2008
* SPA = State Pension Age

9. Assessing your work force
LGPS current admission provisions override Auto Enrolment requirements
LGPS regulations will be changed to meet “Auto-enrolment” requirements
Employers must however make arrangements to re-enrol eligible employees at 3 year staging dates
Pay cut - must take place after 1 April 2008

10. Assessing your work force
Non scheduled LGPS employers (eg Housing Associations) can offer more than one qualifying scheme
Pay cut - must take place after 1 April 2008

11. Opting-out / Re-enrolment
Employer MUST give staff information on how to Opt-out, but should not give out Opt-out Forms
1 Month Opt-out window, which starts after becoming an active member
-Early Opt-outs are invalid (although 2 weeks added to Opt-out window)
-Late Opt-outs – normal scheme rules apply
Pay cut - must take place after 1 April 2008

12. Opting-out / Re-enrolment
Automatic Re-enrolment on 3 year anniversary of employer’s STAGING
- except any job holders who have Opted out in preceding 12 months
Option to move re-enrolment date up to 3 months before, or after, the third anniversary of the staging date
Pay cut - must take place after 1 April 2008

13. Automatic Enrolment & Monitoring
All eligible job holders must be automatically enrolled:
On the employer’s staging date
When they join an employer (post staging)
When they become eligible for the first time (post staging)
If an employer chooses to enrol staff who are not eligible job holders, normal scheme rules apply
Pay cut - must take place after 1 April 2008

14. Automatic Enrolment & Monitoring
Employers must still monitor workers’ age & earnings (every pay period) and automatically enrol any worker
if / when they become eligible job holders
This includes any staff who “opt out” when they were not eligible job holders
Pay cut - must take place after 1 April 2008

15. Questions?