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Since the implementation of Pension Auto Enrolment Scheme, employers as well as employees both are eager to know the terms of this scheme. Here are some frequently asked questions that are being answered here in this article-

Ques 1. Who all are getting enrolled for this pension scheme?

The answer to this question is as follows-

Every employer has to enroll his workers under this Auto-enrolment under the following conditions- If the worker is-

• Not taking or is enrolled in any other workplace pension scheme

• 22 years of age or older.

• Under the age fixed by the state pension.

• Earning a minimum income of 9440 pounds annually or 787 pounds a month or 182 pounds in a week in the year 2013-14.

• Working in UK

Ques 2 . When will be enrolled for the pension scheme?

After you know that you meet the above criteria, you can ask your employer when he will enroll you to the pension enrolment scheme. It actually depends on the size of the company. Large companies have to register immediately. However the enrolment of small companies may take a little time. Millions of employees have already been enrolled under this scheme by several employers since October 2013. When you will approach your employer he will let you know the required information.

Ques 3. What if the criteria mentioned is not for me?

If you see that you do not meet the criteria, then your employer will not Auto enrolment advice you under this scheme. You may join any other pension schemes after consulting with your employer but this workplace pension is not going to help you out. As and when you turn 22 and earn the above mentioned income then you will be automatically enrolled to this scheme.

Ques 4. Why is this pension scheme created?

This pension scheme is created to help more and more people to spend their life with complete comfort after they get retired. This is like a second income after your retirement. You get the state pension as well as the workplace pension to live your life. In this way you can maintain same standards as you will have enough money to serve and help yourself. Since you will be saving everything out of your pay, it will be easier for you to get a huge amount of savings later. It is completely your choice if you wish to enroll into this scheme or not, you can opt out anytime you want to. But it will be good if you start saving for your future right away.

Ques 5. Who all will contribute to the pension?

It will be you, your employer and the government will have to contribute jointly into your pension account. The amount that you will be saving every month from your income, the same amount also has to be deposited by your employer. The government will pay to your account, the amount that had to be paid for tax otherwise. So in this way the government is going to give you a tax relief.

This is all about pension auto enrolment.

Published at: Recent Health Articleshttp://recenthealtharticles.org

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