Automatic enrolment
The government has introduced a new law to make it easier for people to save for their retirement. It requires all employers to enrol their workers into a qualifying workplace scheme if they are not already in one. The Local Government Pension Scheme is one such scheme.
At the moment, many workers fail to take up valuable pension benefits because they do not join their employer's scheme. Automatic enrolment is meant to overcome this.
For the purpose of automatic enrolment workers are put into three different categories depending on how much they earn and their age. The categories are:
- eligible jobholders
- non-eligible jobholders
- entitled workers
New employees
If you are a new employee who is eligible to join the LGPS you will have been entered into the scheme when you started (if you are under age 75 and have a contract of employment for three months or more) as part of your contract of employment.
Opting out
If you subsequently opt out your employer will be required to re-enrol you into the LGPS approximately every three years on a set re-enrolment date, if you are an eligible jobholder.
If you were either a non-eligible jobholder or an entitled worker when you opted out of the LGPS your employer will be required to put you back into the scheme the first time you become an eligible jobholder.
Please note: you can elect to join the LGPS at any time whether you are an eligible jobholder or not.