PENSIONS AUTO-ENROLMENT & RE-ENROLMENT - Frequently Asked Questions
What is Auto-Enrolment?
In 2012, changes were introduced to workplace pensionlaw to ensure thatevery employer in the UK contributes to a workplace pension to help their employees save for their retirement.
This means that the University must automatically enrol employees into one of the University pension schemes,and that both the University and the member of staff will make contributions to the pension scheme. This is known as ‘Auto Enrolment’.
Auto enrolment for GCU started on 1 May 2013but has had different staging dates for new members and for existing membersof staff.
What does this mean for me?
The University has a responsibility to auto-enrol and re-enrol employees who have decided to opt out of the pension scheme. The timing of when employees must be enrolled or re-enrolled into a schemevariesfor different members ofstaff.
In some cases the University is not obliged to enrol staff members into a scheme, for example, where their earnings are below the qualifying thresholds or because they are over the state pension age. In these circumstances, the University must make individuals aware that they are eligible to join a scheme if they wish to do so.
Do I have to join a pension scheme?
The University has a responsibility toenrolall eligible members of staff into a pension scheme with effect from 1 October 2017,but you can opt out if you do not wish to remain a member. To comply with legislation we are required to deduct contributions from your October salary. However, if you do wish to opt out Payroll can refund these contributions in the next available pay period. To opt out, you need to contact the pension provider directlyand obtain an opt out form, and then send the completed form to GCU’s payroll team (). GCU is not allowed to do this on your behalf.
If you wish to opt out and do not provide the opt out form to Payroll within a 3 month period the refund will be processed by the pension fund directly.
Why is the government doing this?
The aim is to help more people have another income, on top of the State Pension, when they retire.
The State Pension is a foundation for your retirement. If you want to have more than your State Pension, then you need to save during your working life. Otherwise you may reach retirement facing a significant fall in your standard of living.
The government is requiring employers to enrol their workers automatically into a pension at work so that is easier for people to start saving. Auto enrolment will not affect your State Pension.
Which pension schemes operate at GCU?
Strathclyde Pension Fund (SPF)
If you are a member of staff on a professional and support contract of employment, you are eligible to join the SPF.
Scottish Public Pensions Agency (Teachers Scheme, or SPPA)
If you are an member of staff on an academic contract of employment, you are eligible to join the SPPA.
A very small number of staff are members of the Universities Superannuation Scheme (USS). However, to join USS you must have been a member of USS before you joined GCU.
If I am a member of the pension scheme, how much do I need to pay into the scheme?
SPF
Employee contributions for the SPF will depend on your annual full time equivalent rate of pay and is on tiered rates:
Contribution rate / FTE Pay Min / FTE Pay Max / Contribution rate / FTE Pay Min / FTE Pay Max5.5 / up to / 21,308 / 8.4 / 59,809 / 61,492
5.6 / 21,109 / 22,640 / 8.5 / 61,493 / 63,275
5.7 / 22,641 / 24,150 / 8.6 / 63,276 / 65,164
5.8 / 24,151 / 25,603 / 8.7 / 65,165 / 67,169
5.9 / 25,604 / 26,607 / 8.8 / 67,170 / 69,301
6.0 / 26,608 / 27,693 / 8.9 / 69,302 / 71,573
6.1 / 27,694 / 28,872 / 9.0 / 71,574 / 74,000
6.2 / 28,873 / 30,155 / 9.1 / 74,001 / 76,596
6.3 / 30,156 / 31,558 / 9.2 / 76,597 / 79,381
6.4 / 31,559 / 33,097 / 9.3 / 79,382 / 82,377
6.5 / 33,098 / 34,762 / 9.4 / 82,378 / 85,607
6.6 / 34,763 / 35,982 / 9.5 / 85,608 / 89,102
6.7 / 35,983 / 37,290 / 9.6 / 89,103 / 92,893
6.8 / 37,291 / 38,698 / 9.7 / 92,894 / 97,022
6.9 / 38,699 / 40,215 / 9.8 / 97,023 / 101,534
7.0 / 40,216 / 41,857 / 9.9 / 101,535 / 106,487
7.1 / 41,858 / 43,638 / 10.0 / 106,488 / 111,948
7.2 / 43,639 / 45,577 / 10.1 / 111,949 / 118,000
7.3 / 45,578 / 46,946 / 10.2 / 118,001 / 124,742
7.4 / 46,947 / 47,978 / 10.3 / 124,743 / 132,303
7.5 / 47,979 / 49,056 / 10.4 / 132,304 / 140,838
7.6 / 49,057 / 50,183 / 10.5 / 140,839 / 150,551
7.7 / 50,184 / 51,364 / 10.6 / 150,552 / 161,703
7.8 / 51,365 / 52,602 / 10.7 / 161,704 / 174,640
7.9 / 52,603 / 53,901 / 10.8 / 174,641 / 189,826
8.0 / 53,902 / 55,265 / 10.9 / 189,827 / 207,904
8.1 / 55,266 / 56,701 / 11.0 / 207,905 / 229,789
8.2 / 56,702 / 58,213 / 11.1 / 229,790 / 256,823
8.3 / 58,214 / 59,808 / 11.2 / 256,824 / and above
The University contributes 19.30%.
SPPA
Employee contributions for the SPPA will depend on your full time equivalent pay are is on tiered rates:
Full Time Equivalent pensionable pay / Contribution rate 2017/18Up to and including £26,259 / 7.2%
£26,260 to £35,349 / 8.7%
£35,350 to £41,914 / 9.7%
£41,915 to £55,549 / 10.4%
£55,550 to £75,749 / 11.5%
£75,750 and above / 11.9%
The University contributes 17.20%.
What if I move jobs?
If you leave GCU, you will be processed as a leaver from either the SPF or the SPPA. You may then be automatically enrolled into the workplace pensionthat operates with your new employer.
Are pensions safe?
Savings (including pensions) are never entirely risk-free. However, the government has put an increasing number of controls in place designed to minimise the risks. This means your money is better protected than in the past.
- The Pensions Regulator regulates workplace pensions
- The Financial Services Authority (FSA) regulates the providers of personal pensions
There is no perfect answer for where to put your money for later life. Each type of saving and investment works differently and has its own pros and cons. But for most people it is better to do something, such as pay into a workplace pension scheme, than do nothing.
I have more questions, who do I contact?
In the first instance email any queries you have to the general enquiries inbox (inserting ‘Auto Enrolment’ into the subject heading) and a member of the team will deal with your query.
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