At Standard Life we want to make it easy for you to run your pension scheme.

To do this, it’s important you know the basics and get the information you need. That’s why we’ve created some simple content on auto-enrolment. This makes sure you know what you need to.

What is auto-enrolment?

Auto-enrolment is a government initiative which sets out rules around workplace pensions. It means employers legally have to join all of their eligible employees to a pension scheme and make payments into it on their behalf. With this you’re helping your employees save for the future, and aim for a more comfortable retirement.

Why was auto-enrolment introduced?

Auto-enrolment was introduced back in 2012. Before this, it was the employee’s decision to join a pension scheme and many people simply didn’t join. The new rules were brought in to make sure that all employees automatically have the opportunity to save for their retirement throughout their working life.

You can find out a bit more about auto-enrolment from The Pensions Regulator site .

Which employees are eligible?

The employees you need to auto-enrol in to your pension scheme will depend on their age and how much they earn. Your employees can be split into three categories:

Eligible employees
These are employees you have to auto-enrol into your pension scheme. They’re anyone who’s aged between 22 and state pension age. They also must earn at least £833 a month, or £10,000 a year.

Non-eligible employees
These are employees that you don’t have to auto-enrol, but if they ask to opt-in to the pension scheme you need to enrol them and pay regular contributions. They’re anyone who is aged 16 to 74 and earns between £520 and £833 a month or aged 16-21, state pension age – 74 and earn over £833 a month.

Entitled employees
These employees are entitled to join your pension scheme, but you don’t have to pay into it for them. They’re anyone who is aged 16 to 74 and earn less than £520 a month.

Earnings Age
16 - 21 22 - State pension age State pension age - 74
Less than £520 a month Entitled employees
Between £520 and £833 a month Non eligible employees
Over £833 a month Non eligible employees Eligible employees Non eligible employees

If you’re looking for more information The Pensions Regulator site has detailed guidance on defining your workforce.

What are your auto-enrolment duties?

Life can help you get it right. Find out what you need to do now and in to the future


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