On the 1st October 2012, the government introduced ‘Automatic Enrolment’. Automatic Enrolment means that as an employer member of the Local Government Pension Scheme (LGPS), you must automatically enrol certain members of your workforce into the pension scheme. All employers need to act to comply with the law. These new duties on employers are to encourage more people to save for a longer retirement.
You will find essential guidance with The Pensions Regulator.
Automatic Enrolment Earnings Bandings
The Department of Work & Pensions (DWP) Website contains the earnings bandings for 2020/21. The earnings trigger of £10,000 for 2020/21 is unchanged since 2015/16.
Automatic Enrolment and Transitional Delay update
The LGA has released an update in the LGPC Bulletin 163 to confirm that the DWP agrees with the Pensions Regulators (TPR’s) guidance. In their view, where an eligible jobholder has been subject to transitional delay, the start date for active membership is the day after the end of the transitional delay. Please read Bulletin 163 for full details.
New Automatic Enrolment Brief Guide
A new version of the automatic brief guide (version 7.0) has been uploaded to www.lgpsregs.org . The new guide aims to supplement the information provided by the Pensions Regulator (TPR); it covers automatic enrolment from the perspective of the LGPS and TPS and contains signposts to the detailed guidance available on TPR’s website. The sample letters have also been updated and are now contained in a standalone document and are also available on www.lgpsregs.org.
Automatic Enrolment Thresholds
Every year, the Department for Work and Pensions (DWP) reviews the earnings thresholds for automatic enrolment. You can find the earnings thresholds for the current tax year here broken down by pay frequency, plus the historic earnings thresholds starting from when the law was introduced in the 2012 – 2013 tax year.
Flowcharts and template letters
You can find useful flowcharts and template letters help you to notify your employees of the changes in The Local Government Pension Committee Guide. There is also an employees’ guide to the LGPS.