Insert to accompany letter template for those automatically enrolled
Your workplace pension questions answered
Why have I been automatically enrolled into the pension scheme?
· All employers now have to put their workers into a pension scheme if they earn over £10,000 per year, are aged 22 or over and are under state pension age. This is the law, because the government wants to get more people to have another income in addition to the state pension when they retire.
What if I don’t want to join the scheme?
· If you don’t want to join the scheme, you need to ‘opt out’.
You can only opt out once you have been enrolled and received a Welcome letter from Welplan Pensions.
To opt out you must complete the opt-out form which is available only from Welplan Pensions, and then follow their instructions.
· You will need to sign the form. Welplan will not accept an opt-out electronically unless it is a scanned copy of a signed opt-out form.
· There is a one month opt-out period which starts from the date of Welplan’s Welcome letter.
· If you opt out during the opt-out period any contributions to your pension you have already made will be refunded (usually via your employer), and you will not have become a member of the scheme on this occasion.
· If you want to stop making contributions after the opt-out period has ended you can do so, but the contributions you have made will not be refunded, they will remain in the scheme in your pension pot.
What if I opt out of the scheme but then change my mind in the future?
· You can ask to rejoin the scheme by contacting us in writing by sending a letter which has to be signed by you. Or, if you send it electronically, it has to contain the phrase, ‘I confirm I personally submitted this notice to join a workplace pension scheme.’
· We will pay contributions into the pension scheme as well, based on your pensionable earnings.
· You can only re-join once in any 12 month period.
If I opt out, what happens after that?
· Anyone who opts out or stops making contributions will be automatically enrolled back into a pension scheme at a later date (usually every three years if they meet certain criteria). This is because your circumstances may have changed and it may be the right time for you to start saving. We will contact you when this happens and you can opt out again if it’s still not right for you.
This is government legislation, so you must be enrolled again, before you can opt out again.
If I want to stay in the scheme do I have to pay in?
· You will pay in 1% of your qualifying earnings each pay period. This will be taken directly from your pay and may include tax relief from the government. We will also pay in 1% of your qualifying earnings each pay period. Therefore, the total contribution to your pension pot will be 2% of your qualifying earnings. (Amend for basic pay)
· You can increase the amount you put in if you want. The employer contribution would remain the same. Please refer to the Welplan website for the AVC guide on how to increase your contributions. Welplan Pensions can also accept transfers in from other schemes, again, please see the Welplan website for details and important information on this matter.
· Qualifying Earnings are what you earn between a minimum (currently £5,876 per year) and a maximum (currently £45,000 a year). (Delete for basic pay)
· Overtime and bonus payments are included for the purposes of calculating the contributions. (Delete for basic pay)
· Any contributions that you make will be collected through your employer’s payroll system. They will be deducted before tax is calculated, under what is known as a ‘net pay arrangement’. If you pay tax, this means you benefit from tax relief at your marginal rate. If you do not pay tax, you will not benefit from tax relief.
Will this amount change?
As your contribution is a percentage of your pay, the amounts will automatically go up or down if your earnings do. Also, we are going to increase the percentage being paid into your pension over the next few years in line with the government’s minimum standards. From 6 April 2018 you will pay 3% of your qualifying earnings each pay period and we will pay 2%. And then from 6 April 2019, you will pay 5% and we will pay 3%. (Amend for basic pay)
Where can I get more information?
If you have any questions about the pension scheme, contact:
Welplan Ltd, Old Mansion House, Eamont Bridge, Penrith, Cumbria, CA10 2BX. Freephone: 0800 1958080 9am-5pm Mon-Fri.
Email:
If you have any questions about your enrolment or contribution levels, contact:
(NAME OF CONTACT)
Postal Address: xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Telephone: 0xxxxxxxxxxxx
Email: xxxxxxx@
For information on pensions and saving for later life visit:https://www.gov.uk/workplace-pensions
DELETE the following sentence IF NOT REQUIRED (EG if enclosed with a PREVIOUS Postponement Letter) - We have also enclosed a brochure, “Introductory Guide to Welplan Pensions” which will provide further information relating to the scheme.