EMPLOYMENT LAW UPDATE

The employer duties will be applied differently to different categories of workers. Do you know how the Pension Reforms affect your organisation?

The three categories of worker are:

1.  Eligible jobholders

2.  Non-eligible jobholders

3.  Entitled workers

Who is an eligible jobholder?

  • A worker aged between 22 and state pension age
  • With annual earnings over £8105
  • Employer duty: Employer must automatically enrol an eligible jobholder into a qualifying pension scheme and make a contribution

Who is a non-eligible jobholder?

  • A worker aged either between 16 and 21 or between state pension age and 74
  • With annual earnings over £8105

Or

  • A worker aged between 16 and 74 with annual earnings between £5564 – £8105

Employer duty: An employer is not required to automatically enrol a non-eligible jobholder into a qualifying pension scheme, but must do so and make a contribution if the non-eligible jobholder chooses to opt in.

Who is an entitled worker? 

  • A worker with annual earnings below £5564

Employer duty: Employer must arrange access to a pension scheme if the entitled worker asks the employer to do so.  This does not have to be a qualifying scheme.  The employer is not required to make a contribution.