Glossary
We have created a Glossary of commonly used terms to help you make your way through the maze of Pensions Reform related terminology.
Throughout this site, terms will also be highlighted which, when selected, will take you to the explanation in our Glossary section.
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Automatic Enrolment
The process of automatically signing employees up to a qualifying pension scheme.
DWP
Department for Work and Pensions.
Eligible employee
Employees eligible for automatic enrolment will be:
- Those who aren't already a member of a qualifying scheme; and
- Aged between 22 years and the State Pension Age
- Earn above the earnings threshold for automatic enrolment (£7,475 gross a year in the 2011/12 tax year)
- Working or ordinarily working in Great Britain
Other employees can choose to opt in. If they earn above the National Insurance threshold (£5,715 in current prices), normal contribution rules apply.
Jobholder
A jobholder is aged between 16 and 75, works or ordinarily works in Great Britain, and earns qualifying earnings.
NEST
National Employment Savings Trust (NEST) is the permanent name of the new national workplace pension scheme, formerly known as personal accounts. NEST operates as a centralised scheme, as a not-for-profit trustee corporation. It is regulated by the Pensions Regulator.
Opting Out
Employees can choose to opt out of the pension once they've been automatically enrolled. They normally have one month to opt out.
Pay Reference Periods
The collection of contributions are based around an individual's pay reference period. This is defined as the frequency with which the individual is paid, or one week if longer.
Pensions Regulator
The Pensions Regulator is the UK regulator of work-based pension schemes.
Qualifying Earnings
The earnings upon which minimum contributions are to be based are those in excess of the earnings threshold (between £5,715 and £38,185 at 2010 prices).
Qualifying Pension Scheme
A scheme that meets certain qualifying criteria.
Re-Enrolment
Every three years employers must automatically enrol eligible employees who have previously opted out. Employers have three months on either side of the re-enrolment date to re-enrol qualifying employees.
Staging Dates
The date the employer is required by law to start auto enrolment. This will depend on the size of the company and the PAYE reference numbers. More information can be found in our Staging Dates pdf.
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