Pensions

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Auto-enrolment and HMRC protections

Auto-enrolment legislation is now in place. It is intended to encourage pension savings.

This legislation requires all employers to automatically enrol some or all members of their workforce (depending on age and salary level) into a pension scheme that meets certain minimum standards.

This might be significant for individuals who have chosen to opt out of the NHS Pension Scheme in order to retain enhanced or fixed protection, or to remain within their standard or tapered tax free pension growth limit permitted under the Annual Allowance.

If this applies to you, please be aware that since October 2012 NHS employers have been automatically re-enrolling members into the NHS pension scheme.

If you have opted out of the NHS scheme for the reasons outlined above you will need to opt out again within one month of the auto-enrolment in order to keep your protections and not breach HMRC rules. Providing you opt-out within the month you will not lose your protection.

 

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