News and Notices

Pension Automatic Re-Enrolment July 2016

As you may remember, Goverment Legislation means employers have to automatically enrol their workers into a workplace pension to help them save for the future. DCHS initially staged auto enrolment on 1st July 2013 when individuals who weren't in a pension scheme at that time were enrolled into the NHS Pension Scheme or our alternative pension scheme NEST (Subject to their eligibility).

Subsequently, some people opted-out of the scheme as they are entitled to do. Goverment ligislation states that the auto enrolment process has to be repeated every 3 years. Re-enrolement, as it is called, means that anyone who is not currently in either pension scheme (e.g. They may have opted-out previously) will be re-enrolled on 1st July 2016 if they meet the criteria below-

  • Are aged at least 22 but under State Pension Age
  • Earn more than 10,000 per year
  • Working, or usually working in the UK.

This means that on 1st July we will be re-enrolling workers adn they will therefore have pension deducted from their July Salary. Its is important that these staff are aware and can make provision for this deduction to be made from their pay. Once automatically re-enrolled individuals 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, individuals cannot ask not to be enrolled.

The Contribution rates for the schemes are-

                NHS Pension Scheme                               NEST

ANNUAL PENSIONABLE PAY
(Full Time equivalent)

Contribution rate (before tax relief) 2016/17 (gross)

Up to £15,431.99

5.0%

£15,432.00 to £21,477.99

5.6%

£21,478.00 to £26,823.99

7.1%

£26,824.00 to £47,845.99

9.3%

£47,846.00 to £70,630.99

12.5%

£70,631.00 to £111,376.99

13.5%

£111,377.00 and over

14.5%

Date

Employee Contribution

Employer Contribution

Total Contribution

Up to Oct 2017

1%

1%

2%

Oct 2017

3%

2%

5%

Oct 2018

5%

3%

8%

 
The employers contribution to the NHS Pension Scheme is 14.3%
We will be writing to all those individuals that this applies to (also giving details on how to opt-out if they wish) however this will not be until mid-July as the information on who has been enrolled is not available until after the payroll has been processed.

**Leaders - could you please make your staff aware of this communication and also print a copy and put on your notice boards**
If you have any queries please contact the Quality & Business Services Team on 01246 253077 (Option 3 then Option 1)