Auto enrolment - who is eligible?

Eligibility for automatic enrolment into a workplace pension:

Workers will be automatically enrolled into a workplace pension scheme if they:

• are not already in their employer’s pension scheme;

• are aged 22 or over;

• are under State Pension age;

• earn more than £10,000 a year (this figure may change); and if they

• work, or usually work, in the UK.

If an individual is part-time, or a temporary, casual or agency member of staff, it makes no difference to their rights to be automatically enrolled and receive an employer contribution as long as they meet the eligibility criteria. Part time workers Part time workers who meet the criteria above are eligible for automatic enrolment.

There are around 6.7 million part time workers in the UK – around a quarter of all workers. Around two fifths of part time workers will be eligible for automatic enrolment. Those who are not eligible for example because they are outside the age limits and / or earning below the earnings trigger can opt in if they choose to do so.

Self-employed workers:

The self-employed are eligible for income tax relief in the same way as other individuals and are able to save into pensions. As part of the reforms, self-employed people will be able to become members of NEST (National Employment Savings Trust). There around 4.2 million self-employed people in the UK, of which around one fifth are contributing to a private pension.

This note is only a guide and does not cover every circumstance.