Automatic Enrolment

The types of workplace pension scheme your employer can offer

What types of workplace pension scheme can my employer offer me?

A workplace pension scheme must be a qualifying pension scheme to meet the requirements of automatic enrolment. It must also meet the minimum levels of contributions or allow benefits to build up at least at a minimum rate.

Qualifying schemes may be either defined benefit schemes or defined contribution (money purchase) schemes.

Employers have a number of different options available to them when selecting a suitable qualifying workplace pension scheme. They can:

• use an existing workplace pension scheme, if it qualifies; existing members may notice no difference in the way that the scheme operates;
• amend an existing workplace pension scheme to meet the qualifying criteria; employers with existing pension schemes that do not meet the minimum qualifying criteria may decide to amend the scheme so that it qualifies;
• set up a new pension scheme which meets the qualifying criteria; and/or
• use NEST (the National Employment Savings Trust), a new scheme that is available to any employer to use for some or all of their staff; or
• use a combination of these options for different areas of their workforce.

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