Glossary
Automatic Enrolment is when an employer makes arrangements to enrol eligible workers into a qualifying scheme so they become an active member of that scheme. The eligible worker will not need to do anything in order to be automatically enrolled. An eligible worker who is automatically enrolled is free to opt out and can stop saving at any time, but needs to take action to do so.
Eligible workers, subject to pending legislation, are workers who earn more than the minimum earnings threshold and:
- are working or ordinarily work in Great Britain
- who are aged at least 22 but have not yet reached State Pension Age
The minimum earnings threshold is currently set at £5,035, but the Government is bringing forward legislation to increase it to £7,475 as the result of the making automatic enrolment work review.
Enabling Retirement Savings Programme – this consists of three bodies that are jointly responsible for delivering the reforms: DWP, the Pensions Regulator (TPR), and NEST Corporation (the National Employment Savings Trust corporation). Their main functions are:
- DWP is responsible for the workplace pension reform policy, the legislation, communicating about the changes, providing information about the nature and impact of the changes to individuals.
- The Pensions Regulator (TPR) is responsible for ensuring employers’ compliance with their new duties.
- NEST Corporation is a pension provider available to all employers who want to use it. NEST has been designed to complement existing pension provision.
Qualifying Schemes are pension schemes that meet certain minimum standards set by legislation. To fulfil his duty to automatic enrolment the employer can choose the scheme which is most appropriate to them.
