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Will I need to review my pension arrangements?

If you have an existing scheme, you'll need to review your arrangements to make sure they comply with the new regulations. If you don't have a pension scheme in place you'll need to set up a qualifying scheme.


What's a qualifying scheme?

At the very least, qualifying schemes must:

  • Automatically enrol eligible jobholders and accept those who are not eligible for automatic enrolment, but who wish to join the scheme anyway
  • Allow jobholders to opt-out if they want to
  • Make minimum contributions on behalf of jobholders
  • Not impose any barriers to joining the scheme

Further details are available on The Pension Regulator's website.

Reviewing an existing scheme

If you have an existing pension scheme, you can enrol all eligible jobholders into this scheme as long as it meets the minimum requirements.

You'll need to identify who of your workforce is eligible to join the scheme. If they are already members of the scheme, you'll need to provide certain information to explain what's happening. If they are not already members of the scheme, you'll need to let them know they will be automatically enrolled and what this means. Information about communicating the changes to employees can be found here.

If your existing pension scheme does not meet the minimum requirements, you may be able to change the rules of the scheme, so that it qualifies. Otherwise, you can set up a new pension scheme which complies.

Setting up a new qualifying pension scheme

If you don't already have a pension scheme in place, or your current scheme doesn't meet the qualifying criteria, you will need to set up a new qualifying scheme before your staging date.

The Government has established the National Employment Savings Trust (NEST) to help employers set up a qualifying pension scheme. NEST has a public service obligation to accept all employers who apply to join the scheme.

Alternatively, you can choose to set up a qualifying pension, like The People's Pension from an experienced pension provider like B&CE.