Automatic Enrolment/re-enrolment

Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work. It requires employers to automatically enrol their eligible workers into a qualifying pension scheme, which the LGPS is - both main scheme and the 50/50 section of the scheme. Monthly contributions are paid by both the individual member and the employer.

For the purpose of automatic enrolment workers are put into three different categories depending on how much they earn and their age. The categories are Eligible Jobholders, Non-Eligible Jobholders and Entitled Workers. To find out which type of worker you see the table below.

Age

16-21

22-SPA*

SPA-75*

Earnings under £6,136 a year

Entitled Worker^

Earnings between £6,136 and £10,000 a year

Non-Eligible Jobholder

Earnings over £10,000 per year

Non-Eligible Jobholder

Eligible Jobholder

Non-Eligible Jobholder

* SPA is State Pension Age

^ Entitled Workers are not auto-enrolled into the LGPS, but can make an election to join the scheme.

If you are an Eligible or Non-Eligible Jobholder, your contract is for three months or more and you are under age 75 you will automatically join the LGPS when your contract commences. If you subsequently opt out, and are an Eligible Jobholder, your employer will be required to re-enrol you into the LGPS approximately every three years on a set re-enrolment date. If you were either a non-eligible jobholder or an entitled worker when you opted out of the LGPS your employer will be required to put you back into the scheme if you subsequently become an eligible jobholder.

If you opt out, you can elect to re-join the LGPS at any time irrespective of whether you are an Entitled Worker, Non-Eligible Jobholder or Eligible Jobholder. But if you have opted out since 11 April 2015, and you rejoin the scheme with the same employer and the same job, you will not be able to join the 2 periods of pensionable service together.

Your employer may choose not to automatically enrol you if:

  • You opted out of the LGPS within 12 months of the date you are due to be automatically enrolled;
  • You have given notice of your resignation or retirement, or you been given notice of dismissal;
  • Your employer believes that you hold a lifetime allowance protection, such as Primary, Enhanced or Fixed Protection (see the section tax controls & pensions for further information about these protections).