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Automatic Enrolment

Why have I been automatically enrolled?

The Workplace Pension Law has changed. This new legislation requires all employers to automatically enrol workers into a workplace pension scheme that meets certain minimum standards. A workplace pension scheme is a way to save for your retirement, in which your employer contributes towards your retirement savings too. 

You will be automatically enrolled into a workplace pension scheme, if you: 

  • Work, or usually work, in the UK; 
  • Are not already in a workplace pension scheme 
  • Are aged 22 or over; 
  • Are under the State Pension Age;
  • Earn more than £10,000* a year 

*from April 2014 - subject to change 

From a date set by the Pension Regulator your employer will begin opting in workers who meet the criteria above, even if they have previously chosen not to join.

All staff affected will be written to explaining how the changes will affect them personally and you can choose to opt out if you want to.

Automatic Enrolment Guidance for Members

For Automatic Enrolment FAQ's click here

Why the Local Government Pension Scheme (LGPS)?

 

The LGPS is one of the most generous pension schemes in the UK. It is backed by the Government which means it is not subject to stock market conditions and it is calculated based on your salary and length of service. 

Key benefits of the LGPS include:

  • Contributions from your employer;

  • Secure pension on retirement;

  • Protection for your loved ones via ill health cover;

  • The ability to nominate co-habiting partners to receive a pension - you do not need to be married;

  • Death cover up to 3x your salary;

  • Ability to translate some of your pension into a tax free lump sum on retirement;

  • No hidden costs or charges - your contributions are based on the amount you earn; and

  • The value of your pension is increased with inflation, meaning it keeps up to date with the cost of living

  • Joining the LGPS comes at a low-cost to you, with tax-efficient savings and lower national insurance contributions for most people under the state pension age. 

I want to opt out, what do I do?

Opting out of the Scheme

You may be thinking of opting out of the scheme, however there are a number of things to think about before you do. Listed below are 10 good reasons for staying in the scheme.

 

Still want to opt out?

If you decide to opt out, you can opt back in at any time.

If you do decide to opt out you must do so within 2 years of joining the LGPS Scheme to receive a refund of your contributions. If the refund is made within the first 3 months this will be refunded through your salary, otherwise it will be made via the LPP. If you have been in the scheme for more than 2 years you'll get deferred benefits which you can take when you retire. If this applies to you we will write to you with more details once your employer tells us you have opted out.

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.

You can only opt out if you have:

  • Commenced employment
  • You have been notified of the benefits of the LGPS Scheme

PLEASE DO NOT COMPLETE THE OPT OUT FORM UNTIL THESE HAVE OCCURED

Electronic opt out form

Print the opt out form 



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