Setting up your Workplace Pension

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  • Setting up
  • If you are choosing NEST, we apply to NEST on behalf of the employer.
  • This establishes a NEST employer ID - pension scheme number.
  • NEST send an email to the employer.
  • To set up the direct debit details for payment of pension contributions.
  • Category 3 employees - Are Automatically Enrolled. See our table below.
  • NEST provide the text for a "Standard enrolment notice" to be sent by the employer to the employees. The notice:
  • States the chosen or minimum percentages 3% + 5% = 8%, see our table below.
  • Explains employee opt out terms.
  • NEST text for a "Standard enrolment notice"
  • NEST Telling your staff about their new pension scheme - Guidance 12 pages.
  • The employee receives a NEST ID and a NEST welcome pack, by post, directly from NEST.
  • Opt out period
  • The opt out period starts three days after the employee has been enrolled and
  • lasts for one month.
  • The employee applies directly to NEST for opt out using the NEST ID.
  • Any deductions will be refunded by NEST - not by the employer.
  • The employee can opt back-in once in any twelve month period.
  • Stop-contributions
  • After the opt out period has ended there is a stop-contributions procedure.
  • Either through NEST or through the employer.
  • There are no refunds applicable to a stop-contributions period; funds already paid stay in the pension pot.
  • "Category 3 employees - Are Automatically Enrolled." means that there is an automatic obligation; nothing happens automatically within the system.
  • At this point you will have had the opportunity to appoint us as a delegate for your NEST account; we get an email from NEST.
  • Staging Date - Your duties start date
  • We can update the contact details to the Pension Regulator.
  • You complete a questionaire from the Pension Regulator.
  • In which you give the start date for the pension deductions and contributions.
  • You receive a Staging Date - Your duties start date; start date for the pension scheme; deductions and contributions start from that date.
  • Or you can contact the Pension Regulator yourself:

Go on to the Pension Regulator website: The Pension Regulator
• Key in both of your payroll references.
• Obtain your Letter Code: Ten number reference.
• Key in your Letter Code.
• On the right hand side of the screen: select: "Update your contact details and sign up to email alerts"
• Enter the details of the senior person responsible for the pension scheme, usually the director or business owner.
This is the person nominated to be kept up to date with automatic enrolment by the Pensions Regulator.
The Pensions Regulator will send them a staging date - Your duties start date by post.
If the Staging Date - Your duties start date is earlier than your next payroll, earlier months of Workplace Pension are entered in the Exception Schedules.

about Contacting the Pensions Regulator yourself.
  • As part of the setup we can Enroll the employees into the scheme to fulfill the obligation.
  • We also enrol Category 1 and Category 2, "right to join" and "right to opt" employees.
  • All employees, to be enrolled, must have received a "Standard enrolment notice" from the employer. This is a legal requirement. NEST provide the text for the notice, at the start of the process.

  • Monthly
  • Employer gets the detail from us:
  • Employee deductions.
  • Pay slip showing employee deductions.
  • Employer contributions.
  • We will key the employee and employer figures into the NEST system.
  • The Staging Date - Your duties start date; may be before the current month payroll; if so, the catch-up months need to be entred in the Exception Schedules.
  • We only have access to three current months at any one time so the employer may need to enter the details, which we provide, in the older months of the Exception Schedules.
  • Only the employer has access to the “Process” button which activates the direct debit payment.
  • When you are happy with the figures you need to process the amounts monthly by:
  • Receiving the figures from us.
  • Logging into NEST.
  • Checking the employee deduction and employer contribution details.
  • Then pressing the “Process” button.
  • The direct debit goes through for the keyed amounts.
  • On the due payment date.

  • Other
  • Within five months - complete a declaration of compliance.
  • If you have opted-out employees - Every three years:
  • Automatic re-enrolment of opted out employees.
  • Previously opted out employees can opt out again.

There is nothing automatic about Automatic Enrolment except that the employer's obligation is automatic for Category 3 employees

There is a choice of provider:

National Employment Savings Trust (NEST) The UK Government scheme

Private providers:
Creative Pension Trust.
The Crystal Trust.
The Lewis Workplace Pension Trust.
NOW: Pensions.
The People's Pension.
True Potential Investments
Smart Pension Master Trust.
Standard Life Workplace Pension.
Workers Pension Trust

NEST is the simplest one where we can provide assistance and may be the cheapest for you to administer.

We can’t provide pension advice but we will assist, as far as possible, in the administration and show the amounts deductible and payable in the monthly payroll package for any Workplace Pension administrator which you may choose.

Workplace Pension Scheme Tax year 2023/24 Tax year 2022/23 Tax year 2021/22
Category 1 employees - Have a right to join a Workplace pension scheme But employee-only contributions. Ages 16 to 74 Earning up to 6,240 per annum
520 per month
Earning up to 6,240 per annum
520 per month
Category 2 employees - Have a Right To Opt In to a Workplace pension scheme - employee and employer contributions Ages 16 to 74 Earning over 6,240 per annum
520 per month
Earning over 6,240 per annum
520 per month
Category 3 employees - Automatic Enrolment employees are Aged 22 to State Pension Age.
Enroll within six weeks of the employee start date.
Earning above 10,000 per annum
833.33 per month
Earning above 10,000 per annum
833.33 per month
Earning above 10,000 per annum
833.33 per month
Directors are exempt from Automatic Enrolment into a Workplace Pension Scheme unless there are two or more directors who have contracts of employment. Most one-man companies or family companies do not have directors with contracts of employment.
Workplace pensions Minimum contributions are:
Employer Minimum Contribution 3% 3% 3%
Employee Minimum Contribution 5% 5% 5%
Total Minimum Contribution - Employer and Employee combined 8% 8% 8%
On earnings in excess of the Lower level of qualifying earnings 'threshold': 6,240 per annum
520 per month
6,240 per annum
520 per month
Deductions from the employee are from the figure after tax and national insurance deductions.
The employee gets tax relief at the income tax standard rate: So with the standard rate at 20%, when the employee contribution is £100.00 the deduction will show on the payslip as £80.00; this is calculated as £100.00 less 20% = £80.00. £100 goes into the pension pot.
The employer gets tax relief by including amounts paid, as employer contributions, in annual Financial Statements and Corporation Tax returns.
Depending on the rules of the scheme, the employee can pay-in less as long as the employer puts-in enough to meet the Total Minimum Contribution.

Talk to us about your Workplace Pension