A person who doesn’t have to be auto-enrolled into a workplace pension.
They can ask to join an employer’s pension scheme, and their employer will have to pay into their pension pots on a regular basis. They are aged:
- aged between 16 and 21 or aged between State Pension age (SPA) and 74 and
- earns above £10,000 a year / £833 a month / £192 a week (2021/2022 tax year) – known as the earnings trigger
- are aged between 16 and 74 and
- have qualifying earnings between £6,240 a year (the lower earnings threshold) and £10,000 a year (earnings trigger for auto-enrolment) for the 2021/2022 tax year.
If you’ve been described as a ‘non-eligible’ employee before, you may hear yourself classed as ‘type 2’ (‘entitled’ employees are also type 2, and ‘eligible’ employees are known as ‘type 1’). It’s just one of the ways The Pensions Regulator is simplifying jargon to make it less complicated.