Auto Enrolment and Workplace Pensions are a peculiar subject when it comes to schools and is complicated even further with Academies.
The education sector would always have said that it does indeed already have a workplace pension. Whether it is the Local Government Pension Scheme (LGPS) or Teachers’ Pension (TP) Additionally, these defined benefit pensions schemes were mandatory, with employees and employers pension contributions and they were indeed mandatory.
Auto Enrolment and Workplace Pensions are a peculiar subject when it comes to schools and is complicated even further with Academies.
The education sector would always have said that it does indeed already have a workplace pension. Whether it is the Local Government Pension Scheme (LGPS) or Teachers’ Pension (TP) Additionally, these defined benefit pensions schemes were mandatory, with employees and employers pension contributions and they were indeed mandatory.
Both schemes have updated and amended their rules to ensure that they comply with the new pension legislation and indeed both are making further changes to the basis of benefits calculations.
So the education sector may think that they are already covered under workplace pensions. However, there are still two a few requirements when the school / Academy reaches staging date and for new employees on an ongoing basis.
Our discussions with schools have highlighted a lack of awareness of the requirements heading into Auto Enrolment. While the anticipated end result is that there will not be significant increases in the overall scheme membership within the education sector there are still a number of additional employer requirements. In particular the following:
Firstly, there is the enrolment requirement at staging date. Statistics show that most employees are already in the scheme. However, those that have previously opted out will need to be enrolled and then opt out again if they choose to.
Secondly, there is concern over the lack of awareness of the employer communication requirements under the new rules.