Pension saving for retirement - auto enrolment
The Government has introduced new arrangements to encourage workers to save for their retirement. From April 2013, new legislation requires the University to enrol all workers who are not already members (and meet the criteria listed below) into an appropriate pension scheme who:
- earn over £9,440 a year
- are aged 22 or over; and
- are under State Pension age
The government’s aim is for more people to have another income, on top of the State Pension, when they come to retire. The full basic State Pension in 2013/14 is £110.05 a week for a single person, although recent government announcements indicate that they are aiming to have a set pension of approximately £140 per week. The state pension is intended to be a foundation only - you may need more. Employers are required to enrol their workers automatically into a pension scheme to make it easier for people to start saving for their retirement.
From April 2013 you will be eligible to opt-in to the NEST pension scheme.
Automatically enrolment into NEST will apply from April 2013 if in any month your gross pay is at least £786 (approximately).
However, the University will postpone automatic enrolment for three months. This means that, for example, if you were paid £800 in April 2013, you are eligible for automatic enrolment into NEST but your automatic enrolment will be postponed until July 2013. If you are paid at least £786 in July 2013, you will be automatically enrolled into NEST. If your pay in July 2013 is less than £786 then automatic enrolment will not apply.
We will write to you if you become eligible for automatic enrolment.
Contact the Pay and Benefits Office if you wish to opt-in to NEST before you are automatically enrolled:
Further information about NEST is available on the NEST website.