Auto enrolment information sessions Sophie Draper HR Business Centre Manager May 2013

Objectives for the session Gain an understanding of auto enrolment legislation Understand the implications of the changes to our 2 main schemes – Teachers Pensions and Local Government Pension Scheme Understand what this means for you and any processes which need changing

What is auto enrolment? Statutory legislation introduced from 01 October 2012 Designed to increase the number of pension paying into an occupational scheme Phased implementation depending on size of organisation from 01 October 2012 until 2018 CYC staging date was 01 April 2013

Who is affected by auto-enrolment? All workers who are: Age 22 or over and Under State Pension Age and Earn at least £9,400 per annum and Work in the UK If you have previously opted-out, must be re- enrolled every 3 years This group are called eligible workers

Auto enrolment terms 3 types of workers – Eligible – Non-eligible – Entitled All eligible workers must be auto-enrolled into a qualifying pension scheme Both LGPS and Teachers Pension are qualifying scheme and we already enrol all new starters Non-eligible and entitled have the right to join a pension scheme at any time

Auto enrolment criteria EarningsAge inclusive SPA *SPA* - 74 Under lower earnings threshold (£5,668) Entitled worker Between £5,668 and £9,440 Non eligible job holder Over earnings trigger for automatic enrolment (£9,440) Non-eligible jobholder Eligible jobholderNon-eligible jobholder * SPA – State Pension Age

Communication with employees Following the staging date, all employees must be given information about pensions Anyone being auto enrolled must be provided with information on enrolment, including their contributions and their right to opt out Those existing employees who are not eligible jobholders must be told how they can opt in to a scheme

Communication with employees All new employees must receive the appropriate letter on starting employment There is specific information that each type of employee must receive There are deadlines for communicating the required information to employees

Decisions CYC have made about auto enrolment Transitional delay – CYC have decided that anyone who is an eligible worker and has previously opted out will not be re-enrolled until April 2017 Postponement - for casuals eligible to join LGPS only we will delay auto enrolment for 3 months Using aggregated earnings per month, not per position

Opting out and refunds Employers must not induce or coerce employees to opt out or not join the pension scheme Once an employee has been auto enrolled, they have 3 months to opt out and receive a refund of their contributions. There is no discretion to refund after 3 months Employees cannot opt out before they commence employment or before they are auto- enrolled Employers cannot provide opting out forms

Changes to LGPS and Teachers Pensions Upper age limit extended to 75 Employees with a contract for less than 3 months and casuals can now opt to join the LGPS TP – employees can now choose to opt in for one post and opt out of another. Previously had to opt in or out of all posts Teachers who already have a full time post and pay pensions must be auto enrolled into the LGPS for their additional posts

What does this mean for you? Limited impact initially as we currently contractually enrol everyone into either the LGPS or Teacher Pensions Scheme Financial implications Make sure your contract/offer paperwork does not refer to opting out Do not give employees an opt out form. If they ask you can let them where to find the opt out form

What does this mean for you? Timely submission of paperwork – Only have 3 months to opt out (backdated to start date) – Regular submission of timesheets as earnings trigger is based on monthly pay (£787) – Need to give all new LGPS starters an employee PEN11 with the offer paperwork Ensure your pension paperwork is up to date

Any questions?

Useful web addresses Pension Regulator Department for Work and Pensions reforms/ North Yorkshire Pension Fund Teachers Pension