Eligibility

1 - Which employees does this affect?
  • Those not already in a qualifying workplace pension scheme
  • They must be at least 22 years old
  • Not yet reached State Pension Age (‘SPA’)
  • Have qualifying earnings that are above the annual ‘earnings trigger’ (currently £10,000 in the tax year 2017/18, being pro-rated depending on pay frequency e.g. weekly/monthly)
  • Work or ordinarily work in the UK
2 - What about other employees?
  • If they are aged between 22 and SPA  and earn more than the  lower level of qualifying earnings (currently £5,876 but less than the ‘earnings trigger’ (currently £10,000) they can still ask to be enrolled and will be treated the same as those automatically eligible
  • If they are aged between 16 and 22, or between SPA and age  75, and they earn more than the lower level of qualifying earnings (currently £5,876)  they can also ask to be enrolled and will be treated the same as those automatically eligible.
  • If they are aged between 16 and 75, but earn below the lower level of qualifying earnings (currently £5,876), they can also ask to be enrolled into a pension scheme, but Compass have no obligation to contribute. This population are known as entitled workers.
  • The threshold values quoted are for the tax year 2017/18 and are pro-rated depending on pay frequency e.g. weekly/monthly
3 - What are qualifying earnings?

These are total gross earnings in a year between £5,876 and £45,000 (the pensions cap). These include salary, bonuses, overtime and any statutory pay elements (sick, maternity, paternity or adoption pay) and cash for car allowance. These threshold values are for the tax year 2017/18 and are pro-rated depending on pay frequency e.g. weekly/monthly. It is expected that the Government will review these threshold values each tax year.

4 - What if an employee is already a member of a pension scheme operated by Compass?

All schemes have been reviewed to ensure they meet the new legislation required under the Pensions Act 2008. Where they do meet these compliance requirements  the employee will not be affected by auto-enrolment. The only exception is the Compass Stakeholder schemes which is not a qualifying scheme. Members of will be assessed for eligibility under the new legislation and may therefore also be auto-enrolled into the NEST scheme as well.