Workplace pension schemes are a vital part of many people's retirement planning. In the UK, employers have a legal obligation to automatically enrol eligible employees into a pension scheme. Let's break down who is eligible for enrolment and the different ways it can happen:
Type of Enrolment | Eligibility Criteria | Employer's Obligation |
Automatic Enrolment | Meets earnings and age criteria to be an "Eligible Jobholder" | Employer has a duty to enrol the employee unless a postponement is in place |
Opting In | Eligible Jobholder during a postponement period or not yet eligible | Can choose to join the scheme |
Asking to Join | Not eligible for automatic enrolment or opting in | May request to join, but employer is not obligated to pay contributions |
Cyclical Re-enrolment | Previously opted out of the scheme | Must re-enrol every 3 years |
Immediate Re-enrolment | Enrolled in a previous scheme that has closed | Must re-enrol the employee into the new scheme |
Contractual / Voluntary Enrolment | Employee's consent | May enrol the employee outside of automatic enrolment rules |