AUTOMATIC ENROLMENT

CAROLINE INGLIS & IRENE BEWS

www.abdn.ac.uk

WHAT IS AUTOMATIC ENROLMENT?

• Millions of people are not saving enough to have the income they are likely to need in retirement.

• Life expectancy in the UK is increasing and at the same time people are saving less into pensions.

• The Pensions Act 2008 – reforms aimed at enabling and encouraging more people to build up a private pension to supplement their State Pension.

• This is the first time that employers have been required by law to contribute to their workers’ pension.

www.abdn.ac.uk

WHAT IS AUTOMATIC ENROLMENT?

• From 1 May 2013 the University will begin enrolling automatically all eligible staff into our existing schemes:• UASLAS for Grades 1-4

• Employee contribution = 7.05%

• Employer contribution = 17.7%

• USS for Grades 5-9

• Employee contribution = 6.5%

• Employer contribution = 16%

www.abdn.ac.uk

WHO WILL BE ENROLLED AUTOMATICALLY?

You will be enrolled automatically into UASLAS or USS if you:

• Are aged 22 or over• Are under state pension age• Earn more than £9,440 a year (this figure may

change each April)• Work or work usually in the UK, and• Are not already in a qualifying pension

scheme

www.abdn.ac.uk

NEXT STEPS

• The University will write to everyone confirming their individual status with regard to automatic enrolment.

• If you are a current scheme member you do not need to take any action.

www.abdn.ac.uk

NEXT STEPS

• If you are not in a scheme and eligible you will be enrolled automatically on 1 May 2013 and will see pension contributions being deducted from your May 2013 payslip.

• If you meet the earnings criteria but are aged either below 22 or above the State Pension age you can opt-in to the pension but this will not be done automatically.

• If you do not meet the earnings criteria you can ask us to join the scheme.

Details on the benefits of the pension schemes can be found at

http://www.abdn.ac.uk/staffnet/working-here/pensions-208.php

www.abdn.ac.uk

OPTING OUT

You can opt out of automatic enrolment if you wish

• USS members• Download an opt-out form at

http://www.uss.co.uk/SchemeGuide/Auto-enrolment/Pages/Default.aspx or call 0151 227 4711

• USALAS members• Download an opt-out form at

http://www.abdn.ac.uk/staffnet/working-here/pensions-208.php or contact university.opt-out@equiniti.com

Return forms on or after 1 May 2013 to the Pensions Office, University Office

www.abdn.ac.uk

OPTING OUT

If you do not want any deductions made:

• Return your opt-out form BEFORE 15 MAY 2013

• If you opt-out after this date pension contributions will be taken but will be refunded the following month.

If you opt-out more than 3 months after being enrolled we cannot guarantee refunds of contributions paid.

QUESTIONS

Come Here.

Go Anywhere.

That’s the difference