Automatic Enrolment
What is it?
‘Workplace pensions’ law has changed. The government has introduced a new law to make it easier for people to save for their retirement.  It requires all employers to enrol their workers into a qualifying workplace scheme if they are not already in one.  At present, many workers fail to take up valuable pension benefits because they do not make an application to join their employer’s scheme.  Automatic enrolment is meant to overcome this.
More details available under
Below given a quick summary about Auto Enrolment for Employee, Employer and Oracle-PeopleSoft Customer.
For Employees
If employee joins a money purchase (defined contribution) scheme, employee will have their own pension pot which will be open upon retirement.  Contributions from employee, employer and government will be paid into employee’s pot.  Employee can retain the same pot even if they move jobs.
Scheme, pension pot, qualify, defined contribution – What is it?
A qualifying scheme can be:
·         A defined contribution scheme with a minimum contribution
Or
·         A defined benefit or hybrid scheme which meets certain conditions.
Sample calculation for employees with TIER 1 scheme:
Each month*,
Employer puts in pension pot
£30
+ Employee put in pension pot
£40
+ the government puts in pension pot
£10 (tax relief)
Total available in pension pot
£80
 * Scheme will be set by the employer. Please contact the employer for the qualifying scheme.
Does this affect me (employee)?
Yes, employees will be automatically enrolled to the scheme, if employee,
·         Is not already in a qualifying workplace pension scheme;
·         Is at least 22 years old;
·         Is below state pension age;
·         Earn more than £8,105 a year; and
·         Work or ordinarily work in the UK (under their contract)
Even if employee doesn’t qualify automatically, employee has the right to join the scheme. Options are available for employee to optout and/or rejoin the scheme.
Note for employee: DONOT misinterpret this post/document as an enforcement to challenge the organization. Please speak to your organization for more details.
For Employers
Is it applicable for my organization?
Yes. Although automatic enrolment comes in from 1 October 2012, individual employers’ duties will be introduced gradually over the following five years, and will be based on the employer’s size.
List of staging dates by PAYE scheme size or reference
PAYE scheme size or reference
Staging date
120,000 or more
1 October 2012
50,000-119,999
1 November 2012
30,000-49,999
1 January 2013
20,000-29,999
1 February 2013
10,000-19,999
1 March 2013
6,000-9,999
1 April 2013
4,100-5,999
1 May 2013
…
…
Complete and latest list will be available at,