News and Notices

Pension automatic re-enrolment July 2019

 

Pension Automatic Re-Enrolment July 2019

If you are already a member of the NHS Pension Scheme or NEST you will not be affected by this, nothing will change and you do not need to do anything.  However if you are NOT a member this could affect you so please take time to read.

As you may remember, Government legislation means employers have to automatically enrol their workers into a workplace pension to help them save for the future.  As an NHS organisation DCHS automatically enrol workers into the NHS Pension Scheme or if not eligible for the NHS Pension Scheme they are enrolled into our alternate scheme (NEST), again subject to eligibility.  Once enrolled, individuals are able to opt-out if they so wish. 

Every 3 years the auto-enrolment process is repeated and employers have to automatically re-enrol anyone not in a workplace pension scheme (e.g. anyone that has opted-out of the pension scheme) who are:

  • Aged at least 22 but under State Pension Age

  • Earning more than £10,000 a year (£833 a month)

  • Working, or usually working in the UK.

For DCHS our re-enrolment date is 1st July 2019.  This means that we will be re-enrolling from 1st July 2019, subject to eligibility, those workers that are not currently in either the NHS Pension Scheme or NEST and this will therefore affect July salary onwards. Those affected will need to make provision for this deduction to be made from July salary.  Once automatically re-enrolled an individual can opt-out again if they wish, or they can remain in the scheme.  Please note it is law that organisations have to actually enrol someone before they can then opt-out, you cannot ask not to be enrolled.

How much will it cost?

                NHS Pension Scheme                                                                 NEST

 

Tier

Pensionable Pay (whole time equivalent) / Earnings used to assess contributions rate

Contribution rate (before tax relief) from 1 April 2015 to 31 March 2021

1

Up to £15,431.99

5.0%

2

£15,432.00 to £21,477.99

5.6%

3

£21,478.00 to £26,823.99

7.1%

4

£26,824.00 to £47,845.99

9.3%

5

£47,846.00 to £70,630.99

12.5%

6

£70,631.00 to £111,376.99

13.5%

7

£111,377.00 and over

14.5%

Date

Employee Contribution

Employer Contribution

Total Contribution

From April 19

5%

3%

8%

 

 

 

The employers contribution to the NHS Pension Scheme is 20.68%

 

This communication is to make everyone aware of the forthcoming re-enrolment however those affected will be sent an individual letter in mid-July which will also detail how to opt-out if they wish. Please note that we will not have a definitive list of those affected until the payroll has gone through its first process and therefore pension will be deducted in July.

**Leaders - could you please make your staff aware of this communication and also print a copy and put on your notice boards**

 

Lynne Shelton

Head of Systems & Information

People Services

 

If you have any queries please contact the Systems & Information Team on 01332 564856 (Option 3 then Option 2)