If you have business software for HR/payroll, your staff eligibility can be assessed automatically from the age/date of birth and salary of each team member.
Otherwise, the information below shows how to do the assessment:
Monthly gross earnings / Age | <= £520/month | £520 to £833/month | > £833/month |
16 to 21 y.o. | Has a right to join a pension scheme | Has a right to opt in | Has a right to opt in |
22 y.o. to SPA* | Has a right to join a pension scheme | Has a right to opt in | Must be enrolled |
SPA* to 74 y.o. | Has a right to join a pension scheme | Has a right to opt in | Has a right to opt in |
What's the difference between the right to join and the right to opt in?
Employees who have the right to join a pension scheme must be provided with a pension scheme if they request so, but the employer doesn’t have to pay contributions.
On the other hand, employees who have the right to opt in must not only be provided with a pension scheme if they request so, but also have employer contributions added to their pension pot.