1. AUTO-ENROLMENT

2. CURRENT POSITION Only CMS employees on main payroll
are enrolled into either USS or OSPS
or can stay with existing scheme e.g. NHSPS
No pension provision for casual workers or re-employed pensioners (Stake holder available)
An individual can decide to opt-out before they are enrolled and their decision is considered final

3. NEW - AUTO-ENROLMENT All eligible employees and workers must be
enrolled automatically into a qualifying pension scheme; or
given the right to opt into (or join) a qualifying pension scheme
If enrolled automatically they must be enrolled before they can choose to opt-out and if they opt-out they must be re-enrolled every 3 years

4. Qualifying schemes “Qualifying” = meets government criteria
Main schemes USS, OSPS, NHSPS, etc are qualifying schemes.
Old Stakeholder scheme NOT a qualifying scheme and replaced by NEST
NEST available to casual workers (can opt to join any time, will be auto-enrolled after 3 month deferral/waiting period)

5. STAGING DATE - 1 March 2013
i.e. the date from which we have duties under the new legislation, in particular:
to advise existing eligible staff that they will be enrolled, and
to enrol all new eligible joiners into a ‘qualifying scheme’.
(NB majority of staff are already enrolled in a pension and therefore not affected)
Some other institutions (e.g. spin-outs) will start at same time
Colleges will join separately and later

6. DEFERRAL DATE – 1 June 2013
Core will be key in auto-enrolment process, but Core Pay only being implemented in May
Under the regulations employers may defer full implementation for up to 3 months
Therefore:
Auto-enrolment for new starters (employees) starts 1 March (payroll/pensions will keep manual records)
Auto-enrolment of existing staff deferred to 1 June
New starters (casuals) will be advised that auto-enrolment duties are deferred for 3 months to 1 June

7. A word on ‘Joint Appointments’
University and College are separate employers
Each has separate staging dates
Therefore those with joint University/college appointments will get separate communications from each employer and each has a separate duty to auto-enrol (individual wishing to opt-out must opt-out twice)

8. KEY DUTIES Assess new and existing workforce
Enrol those who are eligible
Monitor those who are not currently eligible and enrol if they become eligible
Provide regular pensions information
Repeat enrolment exercise every three years

9. WHO IS ‘ELIGIBLE’?
All employees and workers must be put into one of four categories:
Excluded Workers
Eligible Job-holders
Non-eligible Job-holders
Entitled Workers
…what does this mean?

10. 1. Excluded workers Engagement types that are definitely excluded:
Agency workers;
Self-employed contractors;
Anyone NOT ordinarily working in UK
We are also not obliged to enrol casual workers if they have worked for less than 12 weeks.

11. 2. Eligible job holders Definition:
Aged between 22 and State Pension Age (SPA)
Working in the UK
Earnings > £9,440 per annum (£787) per month.
What happens?
Must be auto-enrolled if new joiner from 1 March
Existing ‘eligible jobholder’ employees who are NOT in pension scheme will be auto-enrolled 1 June
If they opt-out, will be re-enrolled in 3 years

12. 3.Non-eligible jobholder
Definition:
Age and earnings between £5,668 pa (£473/month) and £9,440pa (£787/month) OR
Aged between 16 and 21 or between SPA and 74 and earning over £9,440pa (£787/month)
What happens?
We DO NOT have to auto-enrol, but
From 1 March they have the right to opt into the pension scheme associated with their employment type, and for the University to pay their employer contributions
We must monitor them to see if they tip over the age or earnings thresholds to become eligible jobholders

13. 4. Entitled Worker Definition: Aged between 16 and 74
Earnings < £5,668pa (£473/month)
What happens?
They may join a scheme but the University does not need to pay the employer contributions.
We must monitor them to see if they tip over into another category

14. Key assessment criteria – Age
16 – 21 Can only be Entitled Worker or Non-eligible Job-holder
22 - State Pension Age
Could fall into any category
State Pension Age – 74
Can only be Entitled Worker or Non-eligible Job-holder

15. Key assessment criteria – earnings (and pay reference period)
Assessment of earnings has to be made in each pay reference period
Is the worker paid monthly or termly?
That, not annual salary, has to be used to assess for auto-enrolment
If in any one pay reference period earnings spike above a threshold, appropriate action must be taken
NB monthly threshold triggering auto-enrolment = £787

16. Non-eligible Job-holder
ASSESSMENT RESULTS
Age
Earnings
16 – 21
22 – SPA
SPA - 74
Below £5668
Entitled Worker
£5668-£9440
Non-eligible Job-holder
Over £9440
Non-eligible
Jobholder
Eligible

17. Multiple University Appointments
Default:
Treat each contract separately
unless
Contracts are of same type in same department
If so, aggregate
Exceptions:
To be reviewed and agreed with Personnel Services
(Ignore college appointments)

18. ENROLMENT - Summary Eligible Job-holders Non-eligible Job-holders
Must be enrolled
May opt out
Those who opt out have to be re-enrolled later
Non-eligible Job-holders
Must be provided with information
Must be allowed to opt in if they wish
Must be monitored to see if they cross threshold
Entitled Workers
Must be allowed to join a pension

19. Re-employed pensioner
Employee
including
Variable Hours
Re-employed pensioner
If eligible job holder auto-enrol under contractual provision at start of employment
If joins: no further enrolment obligation
If opts out: no further obligation until re-enrolment three years later If not eligible: monitor and re-enrol when hits trigger
e.g. at 22nd birthday or when earnings increase
Casual Worker
Including
casual teacher
examiner
personal services consultant
Apply three month waiting period
If worker leaves: no obligation to enrol
If worker still engaged after three months: assess
if eligible: enrol (in NEST)
if not eligible: continue to monitor and enrol when hits trigger
Not working in UK
Agency Worker
Secondee
Self-employed
No action required

20. Reducing the departmental burden
General
Automating processes where possible (for example building notification letters into new contract templates)
Employees
Enrolment, assessment and ongoing monitoring will be facilitated through Core/Payroll/Pensions
Casual workers
deferring assessment for three months to minimise enrolment/cost
Spikes in earnings have been evened out in part by move to monthly payroll

21. Action required by Departments
Clarify employment status of non-CMS contracts (employee/ worker/self-employed?) and where ordinarily working?
Ensure we hold basic data for all workers (DOB; address) and note pay reference periods
Budget for likely additional costs of employer contributions
Encourage casual workers to submit regular claims, to avoid un-representative spikes in earnings
Ensure that casual appointments are ended promptly after 12 weeks
Issue new contract format and stop issuing pensions opt-out forms to new starters

22. Next steps - February When? What happens?
to all staff advising of the change in the law “information letter to existing staff”
Departments to ensure that those who may not see are forwarded the message
Briefings to administrators
mid-February
As soon as possible
General briefings 14 and 21 February, plus divisional meetings

23. Next steps – wef March Existing staff
What happens?
When?
to all staff in a pension scheme (letter 1 - no action needed)
to all staff not in pension scheme (letter 2 - advising of deferral of auto-enrolment to June)
Staff wishing to join a pension scheme may do so
By staging date (1 March)
Wef 1 March

24. Next steps – wef June Existing staff
What happens?
When?
All eligible existing staff not in a pension scheme will be auto-enrolled
Auto-enrolled staff will be written to individually advising them of this and of their right to, and the mechanism to opt-out
Core takes over ongoing monitoring of age/earnings for non-eligible job holders and entitled workers
1 June
As soon as the pension scheme confirms their membership
Wef June

25. Next steps – wef March New Starters
What happens?
When?
Contract wording is amended (+ new annexe about automatic enrolment)
Casual letter of engagement is amended, advising of 3 month deferral of auto-enrolment
New pension scheme – NEST – is available for casual staff
Old opt-out form is withdrawn
Also new starters under eligibility thresholds for age/earnings start to be monitored
To be available wef mid-Feb to be used for new employee starters from 1 March
To be used for new casual starters from 1 March
From 1 March

26. Additional information
Marie Curie students will be given special presentations (they will be enrolled in USS and both employee and employer contributions will come out of their allowance)
Handbooks and pensions policy will be updated
Flexible retirement now available to support staff too.