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Workplace Pension – Auto Enrolment
You will be automatically enrolled in our workplace pension scheme after completing your third month of employment. The following information provides an overview of how the scheme operates and the choices available for saving towards retirement.
Since the introduction of auto-enrolment, all eligible employees will be enrolled in SmartWork’s selected auto-enrolment scheme, The People’s Pension. It is important to note that all employees have the option to opt out of the scheme after the initial enrollment or opt in if they are not considered eligible jobholders. Please know that the scheme will be activated after your first three months of employment.
Starting from October 2012, employers and employees in the UK have come together to save for retirement through a new pension saving plan called auto-enrolment. This plan allows you to save for your retirement, with even the taxman providing assistance through tax relief.
All contributions to the plan are based on a percentage of your qualifying earnings, which range from £120 to £967 per week. Additionally, you have the option to make Additional Voluntary Contributions (AVCs) to boost your retirement pension further.
According to current legislation, employer contributions are set at 3% and employee contributions at 5%.
The great advantage of this plan is that your pension contributions will be deducted from your earnings before any tax is applied. This means that every £5 of contributions deducted from your pay will only cost you £4, with the remaining £1 being provided as Tax Relief from the Government.
You can join the auto-enrolment pension scheme if you meet the following criteria:
– SmartWork employs you for at least 12 weeks.
– You are not already a member of a qualifying pension scheme.
– You are aged 22 or over but below State Pension Age.
– You earn more than £190 gross in the week that you are being assessed.
– You are paid through PAYE weekly, two-weekly, four-weekly, or monthly.
– You work in the UK.
You may be wondering who will be responsible for managing your pension. Our selected pension provider is The People’s Pension. They will contact you shortly after you receive your first payslip with your pension deduction to provide further information and details about your online account. In the meantime, please ensure that the details we have on file for you are accurate by contacting the SmartWork payroll team.