Jargon Buster: Auto-enrolment
This refers to the government’s initiative to put employees (who are old enough and earn enough) into an employer-run pension scheme. Trustees have a key role to play in helping the employer communicate how auto-enrolment and the pensions reforms will affect all staff, whether they are being auto-enrolled or not. Eligible employees will need to be informed about the scheme in advance, and once they have been put into the pension scheme, they need to be informed that they have the right to opt out. The Pensions Regulator will be monitoring employers’ compliance with auto-enrolment and those that breach the regulation face statutory notices, a fixed penalty or an escalating fine.