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Pensions Auto Enrolment

Frequently Asked Questions

What are the new regulations and what do they mean?

Under the Pensions Act 2008, employers have a duty to automatically enrol their eligible workers into a suitable workplace pension scheme.

This means that from the applicable 'staging date' (see below) an employer will be required to automatically enrol workers into a pension scheme and facilitate contributions on their behalf.

For the purposes of the auto-enrolment rules, 'workers' refers to both eligible permanent employees and temporary agency workers paid on a Pay-As-You-Earn (PAYE) basis.

When do the regulations come in to effect?

The auto-enrolment rules have been introduced in a phased approach according to the size of the employer's payroll.

The first staging date took place in October 2012 for organisations with 120,000 or more workers on their payroll and future staging dates will continue throughout 2013 to the final staging dates in 2015.

When is Hudson's staging date?

Hudson will go live with automatic enrolment on 1st November 2013.

Further information will be provided in advance of this date.

How do I qualify for pension auto-enrolment?

Workers are divided into three categories depending on age and earnings which will determine eligibility for auto-enrolment.

The categories are:

Category Detail Automatic Enrolment?
Eligible Jobholder Worker aged between 22 and State Pension Age; Annual earnings of £9,440 and above Yes
Non-Eligible Jobholder Worker aged between 16 and 21 OR between State Pension Age and 74 with annual earnings of £9,440 and above; Worker aged between 16 and 74 with annual earnings between £5,668 and £9,440 No - although enrolment will apply if the worker requests to participate in a pension scheme
Entitled Worker Workers with annual earnings of £5,668 and under No

* Earnings thresholds are current for 2013/2014 tax year

I am a PAYE temporary agency worker through Hudson, will I be eligible to contribute to a pension scheme?

If you are paid on a PAYE basis directly via the Hudson payroll, and provided you meet the criteria of 'Eligible Jobholder' as outlined above, you will be eligible for automatic enrolment into a pension scheme .

How do pension contributions work?

Pension contributions are set at a minimum rate of 1% of your qualifying earnings each week or month (depending on the frequency of your payment).

The contribution will be administered from your pay and deposited directly into a pension scheme.

You will also receive a matching "employer" contribution which will bring the total value of your contribution each week or month to 2% of your qualifying earnings.

What are 'qualifying earnings'?

Qualifying earnings refers to the overall earnings threshold used each week or month to assess eligibility for pension contributions each week. The current annual qualifying earnings threshold for automatic enrolment in 2013/2014 is £9,440 which is broken down into weekly or monthly amounts in line with the frequency of your payment.

Can I expect to contribute the same value into a pension each week or month?

Your contributions will be made at a standard rate of 2% (1% of your pay and 1% matching employer contribution) based on your qualifying earnings for the week or month.

As a temporary worker your earnings may fluctuate from week to week depending on the hours that you work, therefore the value of your pension contribution will also fluctuate in line with your working pattern and timesheet submission.

Do I have to automatically enrol in a pension scheme or can I opt out?

You will be automatically enrolled into a pension scheme if you meet the criteria of 'Eligible Jobholder' as outlined above.

However, should you wish to exit the scheme you can elect to 'opt out' of making contributions to a pension.

Please note Hudson are unable to advise or recommend whether to opt out of a pension scheme or not. Electing to remain in a pension scheme or opt out is a decision which rests solely with you and is one which Hudson will not influence.

What is Hudson doing to prepare for auto-enrolment?

We have a dedicated project team established to manage the auto-enrolment requirements.

Following a comprehensive review process with a number of pension providers we have appointed the National Employment Savings Trust (NEST) as our preferred partner to manage pension provisions.

NEST is an occupational pension scheme run on a not-for-profit basis with an aim to help meet your needs for retirement. NEST offer a carefully selected choice of funds to ensure savings are tailored to your circumstances.

Further details will be provided at the enrolment stage – you can also visit the NEST website www.nestpensions.org.uk for further information.

Further Information

Further updates and a comprehensive communication will follow in advance of our staging date on 1st November which will outline the key points you should be aware of regarding pension auto-enrolment and how it affects you.

Queries

Should you have any queries regarding how auto-enrolment may affect you as a temporary worker through Hudson please do not hesitate to contact UK-Pensions@hudson.com and a member of our team will respond to your query.

QUESTIONS?

For support regarding Auto-Enrolment please contact:
UK-Pensions@hudson.com

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