Pension Auto Enrolment
To encourage individuals to save for retirement, the Government introduced workplace pensions under the Pensions Act 2008. Since October 2012, employers have been required to automatically enrol eligible workers into a qualifying workplace pension scheme and to make minimum contributions on their behalf.
Although auto-enrolment has been fully implemented for some time, all clubs with staff remain subject to ongoing statutory compliance obligations.
Clubs are required to:
Employees must be assessed each pay period and placed into one of the following categories:
These employees must be automatically enrolled, and employer contributions are required.
These employees are not automatically enrolled, but may opt in and, if they do, employer contributions must be paid.
These workers may ask to join a pension scheme, but no employer contributions are required.
Clubs must select a qualifying auto-enrolment pension scheme that meets statutory minimum requirements. Further guidance on scheme criteria is available from The Pensions Regulator, and professional advice may be appropriate, particularly where staff turnover is high or working patterns are irregular.
Employers are legally required to write to all workers (excluding those under 16 or over 75), explaining how auto-enrolment affects them. The content and timing of communications depend on the employee’s category and whether postponement is being used.
Contributions are calculated on qualifying earnings, which for 2025/26 are earnings between:
The minimum contribution rates are:
These rates have applied since April 2019 and remain unchanged.
Employers must not encourage staff to opt out. Opting out is a right exercised by the employee after they have been enrolled and the first contribution deducted.
Opt-out requests must be made using an official opt-out notice issued by the pension provider. Employers must not create or supply their own opt-out forms. Records must be retained until the next re-enrolment date, which normally occurs every three years.
In practice, opt-out rates have generally remained low.
Postponement allows a club to defer auto-enrolment for up to three months and is commonly used:
Postponement does not remove the duty to enrol; it merely delays it. Employees must be notified in writing within six weeks of postponement starting.
The Pensions Regulator is responsible for overseeing workplace pensions and auto-enrolment compliance. While the Regulator’s approach has been largely educational, it has powers to issue compliance notices, financial penalties and, in serious cases, pursue prosecution for deliberate non-compliance.
All employers must submit a declaration of compliance within five months of their staging date and again after each three-year re-enrolment.
We can provide a comprehensive auto-enrolment and payroll support service, including employee assessment, payroll processing, pension deductions, assistance with scheme selection and ongoing compliance support.