Frequently Asked Questions

1. What is auto-enrolment?
2. Who will this affect?
3. If I don’t meet the criteria on earnings or age, can I still join a pension scheme?
4. How will I be contacted about Auto Enrolment?
5. Will the University tell me what to do?
6. What if I am a casual/atypical/bank worker?
7. Will I have to pay into my pension scheme once enrolled?
8. What if I am already auto-enrolled by another employer?
9. What if I do not want to join a pension scheme, can I opt-out?
10. Can I join a pension scheme before Auto Enrolment?

1. What is auto-enrolment?

   Auto-enrolment is new legislation which means that all employers must enrol their workers into a suitable pensions scheme on a given date (the employer’s staging date). It is part of a Government initiative to encourage more people to save for their retirement through increased pension scheme membership across the whole country.

   The new law comes into force at the University on 1 April 2013.
   

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2. Who will this affect?

   It will affect those people who undertake work at the University either as an employee (with a formal contract of employment) or as a casual/atypical/bank worker who is paid directly by the University.
   

   Those who are not currently a member of a pension scheme at the University will have to be automatically enrolled into a pension scheme after 1 April 2013 provided they earn at least £787 per month (gross, i.e before tax and national insurance deductions) and are aged between 22 and 65 years old.

   People who are currently a member of USPS, USS or the NHS Pension Scheme will not be affected by the new law however you will still receive communication from the University to simply confirm this position. This is a legal requirement.

   If you are unsure, you can check if you are a member of a pension scheme by looking at your payslip where deductions for pension scheme membership will be shown.
   

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3. If I don’t meet the criteria on earnings or age, can I still join a pension scheme?

   Yes, the University is keen to support all staff in saving for their future and even if you are not automatically enrolled into a pension scheme, you can opt to join a scheme offered by the University.

   Depending on the grade of work you are doing at the University you can join the appropriate pension scheme (USPS for work up to grade 5 and USS for work at grade 6 and above). You should contact the Pensions Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk.
   

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4. How will I be contacted about Auto Enrolment?

   The University will be providing information to managers and staff about auto-enrolment in the coming weeks and months. There are articles in Overview, broadcast (announce) emails and face to face briefings being planned. More details on the briefings will be posted on these pages once they are confirmed.

   The University will be contacting all staff to inform them individually how the new law will affect them (if at all). The main method for this communication will be by email, so in order to make sure that you do not miss out on really important communications relating to your pension position, it is vital that your contact details are up to date. Staff with access to myJob should log on via MUSE and ensure their email address, home address and telephone number are up to date as soon as possible.
   

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5. Will the University tell me what to do?

   The University will be contacting all staff to inform them of how the new law will affect them (if at all) but the University is not allowed to offer advice or guidance on what you should do as a result of the impact of the new law.
   If you have any queries on auto-enrolment having received any letters or emails from the University on the subject then please contact the Pensions Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk.
   

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6. What if I am a casual/atypical/bank worker?

   Provided you meet the criteria on earnings (at least £787 per month) and age (between 22 and 65 years), you will be automatically enrolled into the grade appropriate pension scheme, irrespective of whether you are an employee or a casual worker.

   Due to the variable nature of payments for casual/atypical/bank workers, the University will postpone the assessment of auto-enrolment eligibility for this group until the third month after the University's staging date, or after the first work undertaken at the University, whichever is later. Thereafter, eligibility for automatic enrolment into a pension scheme for casual/atypical/bank workers will be assessed on a monthly basis in reference to the pay received each month and age.

   If a casual/atypical/bank worker is automatically enrolled as a result of hitting the earnings and age triggers, they will remain enrolled into the appropriate pension scheme until such time as they cease working at the University or choose to opt out, even if earnings in subsequent months fall below the £787 per month auto-enrolment trigger level.

   Even if a casual/atypical/bank worker does not meet the criteria for automatic enrolment, they can still choose to join the appropriate pension scheme at any time by contacting the Pensions Team on 0114 222 1397 or via email at Pensions@sheffield.ac.uk.
   

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7. Will I have to pay into my pension scheme once enrolled?

   USPS, USS and the NHS Pension Schemes all require members to make contributions towards their retirement income. These member contributions are however supplemented by employer contributions from the University.
   

   If automatically enrolled into USPS (i.e. you are working in a role on grades 1 to 5), you will pay 4% of your pay (before tax) towards your retirement savings. Because the contributions are deducted before you are taxed on them, your take-home pay is reduced by less than 4%.
   As an example USPS membership will cost you around 3.2% of your monthly take-home pay. If you earn £10,000 per year, this will mean your take-home pay will reduce by £26.67 per month to cover your pension scheme membership. With the University’s contribution, and tax relief, this will turn into £125 per month, or £1,500 per year towards your retirement income, plus you get the peace of mind of life cover of 4 times your salary which goes with your pension scheme membership at no extra cost.
   In USPS you have the option to choose a level of contribution of between 2% and 10% of your pay and received different contributions from the University as outlined in the Pensions Team web pages information for USPS.

   Member contributions to USS are either 6.5% in the Career Re-valued Earnings section, or 7.5% in the final salary section (see scheme web pages for your eligibility and benefits modellers). NHS Pension Scheme member contributions vary from 5% to 10.9% depending on your income. Member contributions to both the NHS Pension Scheme and USS are also paid from gross pay and so attract tax relief.
   

   A link to the University's pension schemes can be found in the "See Also" section to the right of this page.

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8. What if I am already auto-enrolled by another employer?

   Each employer is treated separately. If you earn over £787 per month at the University and are aged between 22 and 65 years you will be automatically enrolled into the appropriate pension scheme.
   This may mean that you are automatically enrolled into different pension schemes by both or all of your employers.
   

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9. What if I do not want to join a pension scheme, can I opt-out?

   If you are automatically enrolled, you can opt-out of pension scheme membership once you have been enrolled into it, but not before.

   You should think carefully about the benefits you are giving up by not being a member of a pension scheme, including life cover and of course an income in retirement as well as the immediate cost of pension scheme membership.
   The opting out process will be handled by the pension scheme provider, who will provide the necessary forms.

   Provided you opt out within one month of being automatically enrolled your contributions will be refunded to you.
   

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10. Can I join a pension scheme before Auto Enrolment?

    The University's pension schemes are still open to new members in
    advance of Auto Enrolment. Anyone not currently a member of a pension scheme at the University who wishes to join should contact the Pension Team on 0114 222 1397 or via email at Pensions@sheffield.ac.uk.

    Further information on the pension schemes available at the University can be found here
    http://www.shef.ac.uk/finance/staff-information/mymoney/mypension
    

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