Workplace pension Q&A
Your workplace pension questions answered:
Why have I been put into a pension scheme?
- All employers now have to put their workers into a pension scheme if they earn over £10,000 per year, are aged 22 or over and are under state pension age. This is the law, because the government wants to get more people to have another income in addition to the state pension when they retire.
What if I don’t want to join the scheme?
- If you don’t want to join the scheme, you need to ask to leave it. You can choose to leave the scheme in the one month period starting from when you receive the correspondence from The People’s Pension. You do this by completing the opt out process available from the People’s Pension. This can be completed electronically or by telephone.
- Or you can ask them for a form, you will need to sign the form, or if you send it electronically it will need to include confirmation that you are submitting it personally.
- The pension provider will also be able to tell you when the one month period started, if you aren’t sure.
- If you leave the scheme during this period any money you have already paid into your pension will be refunded and you won’t have become a member of the scheme on this occasion.
- If you want to stop paying into your pension after the end of this one month period you can. The money you have already put in will not be refunded.
What if I ask to leave the scheme but then change my mind in the future?
If I ask to leave the scheme, what happens after that?
- You can ask to rejoin the scheme by contacting us in writing by sending a letter which has to be signed by you. Or if you send it electronically, it has to contain the phrase, ‘I confirm I personally submitted this notice to join a workplace pension scheme.’
- If you earn more than £118 a week we will pay into the pension scheme as well.
- You can only re-join once in any 12 month period.
If I want to stay in the scheme do I have to pay in?
- Anyone who asks to leave, or stops paying into, the scheme will be put back into it at a later date (usually every three years if they meet certain criteria). This is because your circumstances may have changed and it may be the right time for you to start saving. We will contact you when this happens and you can ask to leave the scheme.
Will this amount change?
- You will pay in 5% of your earnings each pay period. This will be taken directly from your pay and may include tax relief from the government. We will also pay in 3% of your earnings each pay period. Therefore, the total amount put into your pension pot will be 8% of your earnings.
Have pension contributions always been the same?
- As the money you pay in is a percentage of your pay, the amounts will automatically go up or down if your earnings do.
- No, the government change the contributions. Please see the table below.