Automatic Re-enrolment 2016 – Communication to Fee Earners who are not members of NEST
You may already be aware that the legislation around workplace pensions has changed. Employers are required to put individuals who meet certain criteria into a workplace pension scheme and to contribute towards it. This is called automatic enrolment.
SQA’s date for the introduction of automatic enrolment was 1 March 2013 and the workplace pension scheme SQA chose for fee earners was NEST.
You may also recall that as a requirement of automatic enrolment legislation, SQA is required to re-enrol you every three years from 2013 if you have either opted out or stopped contributing since your initial automatic enrolment date.
SQA’s re-enrolment date is 1 May 2016. You will only be re-enrolled on this date if:-
- You are between the ages of 22 and state pension age
- Your earnings are more than the monthly trigger for automatic enrolment (currently £833 per month) on 1 May 2016
You will receive a letter from SQA advising you that you have been re-enrolled into NEST. This will include details of the opt out process should you wish to do this.
Please note that if you are automatically re-enrolled, your pension contribution will already have been deducted from your payment. If, after careful consideration, you decide to opt out of NEST, you will receive a full refund of your contributions in the following month, provided that you opt out within the time period as specified by NEST in the documentation they send you.
Where to go for further information on NEST
You can find out more about pensions and being a member of NEST by visiting their website at www.nestpensions.org.uk or search online for NEST pensions.
If you have any general queries regarding automatic re-enrolment, please contact Kate Macfarlane, HR Officer – Reward on 0345 213 5227. If your query is related to your actual enrolment or deduction of pension, please contact Alison O’Donnell, Payroll Supervisor on 0345 213 6923. Please note that we cannot provide advice on whether to remain in NEST or opt out.
Why have I been automatically re-enrolled back into NEST? I opted out of the Scheme when I was originally automatically enrolled.
The Government has introduced the legislation as millions of people are not saving enough for their retirement. The aim is to help more people have another income on top of the State Pension when they retire. The State Pension is a foundation for retirement. If you want to have more, you need to save during your working life. Otherwise, you may reach retirement facing a significant fall in your standard of living.
I don’t want to be in the Scheme. Do I have to go through the opt out process again?
Yes if you are sure you do not want to remain in the Scheme. The opt out process is exactly the same as last time. However, you cannot opt out before you have been automatically re-enrolled.
Will this be the last time I have to opt out of NEST?
SQA is required to re-enrol fee earners who have previously opted out of NEST every 3 years from the original staging date if they meet the relevant criteria on the re-enrolment date. The next re-enrolment date will be in 2019 (actual date to be confirmed nearer the time). If you are working for SQA at that time and meet the criteria on the re-enrolment date, you will be automatically re-enrolled again. This is a legislative requirement..