The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010

Made: 11th March 2010

Coming into force: 1st October 2012

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 111A(15)(b), 181 and 182(2) and (3) of the Pension Schemes Act 1993 , sections 49(8), 124(1) and 174(2) and (3) of the Pensions Act 1995 and sections 2(3), 3(2), (5) and (6), 4(1) and (3), 5(2) and (4), (6), (7) and (8), 6(1)(b) and (2), 7(4), (5) and (6), 8(2)(b), (3), (4), (5) and 8(6), 9(3), 10, 15, 16(2) and (3)(c), 18(c), 22(4) to (7), 23(1)(b) and (3), 24(1)(a) and (b), 25, 27, 30(6)(c), 33(2), 37(3), 99 and 144(2) and (4) of the Pensions Act 2008 .

In accordance with section 185(1) of the Pension Schemes Act 1993 and section 120(1) of the Pensions Act 1995, the Secretary of State has consulted with such persons as the Secretary of State considers appropriate.

A draft of these Regulations was laid before Parliament in accordance with section 143(4) and (5)(a) and (b) of the Pensions Act 2008 and approved by a resolution of each House of Parliament.

PART 1 — Citation, commencement and interpretation

Citation, commencement ... and interpretation

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• (1) These Regulations may be cited as the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 and shall come into force on 1st July 2012, immediately after the time when the amendments made by the Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2012 come into force .

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In these Regulations—

• “the Act” means the Pensions Act 2008;

• “the 1993 Act” means the Pension Schemes Act 1993;

• “the 1995 Act” means the Pensions Act 1995;

• “applicable pay reference period” means—a period of one week; orin the case of a jobholder who is paid their regular wage or salary by reference to a period longer than a week, that period;

• “automatic enrolment date” has the meaning given by section 3(7) (automatic enrolment) of the Act;

• “automatic re-enrolment date” means the date determined in accordance with regulation 12;

• “enrolment date” means the date determined in accordance with regulation 18(6);

• “enrolment information” has the meaning given by regulation 2;

• “jobholder information” has the meaning given by regulation 3;

• “joining notice” means a notice given under section 9(2) (workers without qualifying earnings) of the Act;

• “opt in” means the jobholder's right under section 7(3) of the Act (jobholder's right to opt in) by notice to require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme;

• “opt in notice” means a notice given under section 7(3) (jobholder's right to opt in) of the Act;

• “opt out” means the jobholder's right to give notice under section 8 (jobholder's right to opt out) of the Act;

• “opt out notice” means a notice in the form set out in the Schedule 1 ;

• “opt out period” means the period determined in accordance with regulation 9(2) or (3);

• “staging date” means the date on which sections 2 to 8 of the Act first apply in relation to the employer.

Enrolment information

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In these Regulations “enrolment information” means the information described in paragraphs 1-15, and 24 of Schedule 2.

Jobholder information

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• (1) In these Regulations “jobholder information” is the jobholder's—

• (a) name;

• (b) date of birth;

• (c) postal residential address;

• (d) gender;

• (e) automatic enrolment date, automatic re-enrolment date or enrolment date, as the case may be, or for a jobholder to whom regulation 28 or 29 applies, the date mentioned in regulation 7(1) as modified by regulation 28 or 29, as the case may be;

• (f) national insurance number;

• (g) the gross earnings due to the jobholder in any applicable pay reference period;

• (h) the value of any contributions payable to the scheme by the employer and the jobholder in any applicable pay reference period, where this information is available to the employer;

• (i) postal work address;

• (j) individual work e-mail address, where an individual work e-mail address is allocated to that jobholder; and

• (k) personal e-mail address, where the employer holds this information.

• (2) For the purposes of paragraph (1)(h), “the value” of contributions may be expressed as a fixed amount or a percentage of any qualifying earnings or pensionable pay due to the jobholder in any applicable pay reference period.

Pay reference periods for the purposes of sections 1(1)(c), 3(1)(c) and 5(1)(c) of the Act

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• (1) This regulation applies for the purposes of sections 1(1)(c), 3(1)(c) and 5(1)(c) of the Act (jobholders, automatic enrolment and automatic re-enrolment).

• (2) The pay reference period in respect of a person is determined in accordance with paragraph (3) or paragraphs (4) and (5), whichever the employer may decide.

• (3) For the purposes of this paragraph, the pay reference period is—

• (a) in the case of a person who is paid their regular wage or salary by reference to a period of a week, the period of one week;

• (b) in the case of a person who is paid their regular wage or salary by reference to a period longer than a week, that period.

• (4) For the purposes of this paragraph, subject to paragraph (6)(b), a pay reference period is—

• (a) a period equal in length to the usual interval between payments of the person’s regular wage or salary; or

• (b) the period of a week,

whichever is the longer.

• (5) For the purposes of paragraph (4), pay reference periods commence—

• (a) where the person is paid monthly, on the first day of a tax month;

• (b) where the person is paid weekly or the pay reference period is a week, on the first day of a tax week;

• (c) where the person is paid at intervals of multiple weeks, on—

• (i) 6th April; and

• (ii) the first day of the tax week which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (6) applies; and

• (d) where the person is paid at intervals of multiple months, on—

• (i) 6th April; and

• (ii) the first day of the tax month which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (6) applies.

• (6) Where paragraphs (4) and (5) apply and a pay reference period includes the last day of a tax year—

• (a) the next pay reference period commences on 6th April; and

• (b) if the qualifying earnings which, but for this sub-paragraph, would fall in that pay reference period, are paid or payable on or after 6th April, the pay reference period ends on 5th April.

• (7) In this regulation—

• “pay interval period” means a period which is equal in length to the usual interval between payments and each whole multiple of that period;

• “tax month” means the period beginning with the sixth day of the month and ending on the fifth day of the following month; and

• “tax week” means one of the successive periods in a tax year beginning with the first day of that year and every seventh day after that (so that the last day of a tax year or, in the case of a tax year ending in a leap year, the last two days is treated as a separate week).

Pay reference periods for the purposes of section 20(1)(b) and (c) and section 26(4)(b) and (5)(b) of the Act

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• (1) The pay reference periods for the purposes of section 20(1)(b) and (c) (quality requirement: UK money purchase schemes) and section 26(4)(b) and (5)(b) (quality requirement: UK personal pension schemes) of the Act are as follows.

• (2) A pay reference period may be either—

• (a) subject to paragraph (10), a period of a year, ending on the day before an anniversary of the employer’s staging date;

• (b) a period which is equal in length to the period by reference to which the jobholder is paid their regular wage or salary, commencing on the first day of that period; or

• (c) subject to paragraph (4)(b), a period which is equal in length to the usual interval between payments of the jobholder’s regular wage or salary, commencing on the date determined in accordance with paragraph (3).

• (3) Where paragraph (2)(c) applies, pay reference periods in respect of a person commence—

• (a) where the person is paid monthly, on the first day of a tax month;

• (b) where the person is paid weekly, on the first day of a tax week;

• (c) where the person is paid at intervals of multiple weeks, on—

• (i) 6th April; and

• (ii) the first day of the tax week which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (4) applies; and

• (d) where the person is paid at intervals of multiple months, on—

• (i) 6th April; and

• (ii) the first day of the tax month which commences immediately after the expiry of a pay interval period beginning on 6th April, unless paragraph (4) applies.

• (4) Where paragraph (2)(c) applies and a pay reference period includes the last day of a tax year—

• (a) the next pay reference period commences on 6th April; and

• (b) if the qualifying earnings which, but for this sub-paragraph, would fall in that pay reference period, are paid or payable on or after 6th April, the pay reference period ends on 5th April.

• (5) Where paragraph (2)(a) applies, the first pay reference period in respect of a person commences—

• (a) on the relevant day; or

• (b) where there has been a period beginning after the relevant day, during which the requirements of section 1(1)(a) or (c) of the Act were not met but the person remained an active member of a qualifying scheme, on the day following the last day of that period.

• (6) Where paragraph (2)(b) applies, the first pay reference period in respect of a person commences on the first day determined in accordance with that paragraph which falls on or after the relevant day.

• (7) Where paragraph (2)(c) applies, the first pay reference period in respect of a person commences on the first day determined in accordance with paragraph (3) which falls on or after the relevant day.

• (8) Subject to paragraph (2)(c), a pay reference period in relation to any person ends on the day before the day on which the next pay reference period begins.

• (9) Where a person ceases to be a jobholder of the employer or ceases to be an active member of a qualifying scheme the last pay reference period—

• (a) ends on the day on which the person’s status so changes, where paragraph (2)(a) applies; or

• (b) is the pay reference period which includes the day on which the person’s status so changes, where paragraph (2)(b) or (c) applies.

• (10) A pay reference period under paragraph (2)(a) may be less than a year if it either commences or ends within the period of a year ending on the day before an anniversary of the employer’s staging date.

• (11) In this regulation—

• “relevant day” means the first day on or after the staging date on which the person is both a jobholder and an active member of a qualifying scheme; and

• “pay interval period”, “tax week” and “tax month” have the same meaning as in regulation 4.

PART 2 — Automatic enrolment, opt out and refunds

Arrangements to achieve active membership

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• (1) The arrangements the employer must make in accordance with section 3(2) (automatic enrolment) of the Act are to enter into arrangements with—

• (a) the trustees or managers of an automatic enrolment scheme which is an occupational pension scheme, so that before the end of a period of six weeks beginning with the automatic enrolment date the jobholder to whom section 3 of the Act applies becomes an active member of that scheme with effect from the automatic enrolment date; or

• (b) the provider of an automatic enrolment scheme which is a personal pension scheme, so that before the end of a period of six weeks beginning with the automatic enrolment date the jobholder to whom section 3 of the Act applies is given information about the terms and conditions of the agreement to be deemed to exist under paragraph (2).

• (2) Where the employer enters into arrangements with a personal pension scheme provider under paragraph (1)(b), the jobholder is deemed to have entered into an agreement to be an active member of that scheme with effect from the automatic enrolment date, on the later of—

• (a) the date on which the personal pension scheme provider gives the information required by paragraph (1)(b); or

• (b) the date on which the employer gives the jobholder the enrolment information in accordance with regulation 7(1)(a).

• (3) The terms and conditions of an agreement deemed to exist under paragraph (2) must, as a minimum—

• (a) explain the purpose of the personal pension scheme;

• (b) specify the services to be provided by the personal pension scheme provider;

• (c) specify the value of any contributions payable by the jobholder, where this information is available to the personal pension scheme provider;

• (d) specify the charges which may be payable to the personal pension scheme provider; and

• (e) in the absence of a choice made by the jobholder, explain the investment strategy adopted by the personal pension scheme provider in relation to any contributions payable to the scheme by or in respect of the jobholder.

• (4) In paragraph (1)(b) the reference to “terms and conditions” is a reference to the terms and conditions mentioned in paragraph (3).

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• (1) Subject to paragraph (2), for the purposes of the arrangements under section 3(2) of the Act, at any time before the end of a period of six weeks beginning with the automatic enrolment date, the employer must give—

• (a) the jobholder the enrolment information in writing; and

• (b) the trustees or managers of the occupational pension scheme or the personal pension scheme provider the jobholder information in writing.

• (2) The requirement in paragraph (1)(b) does not apply in relation to the information specified in regulation 3(1)(g), (h), (i), (j) or (k), where the trustees or managers of the occupational pension scheme notify, or the personal pension scheme provider notifies, the employer that they do not require that piece of information for the purposes of arrangements under section 3(2) of the Act.

• (3) Where the information referred to in regulation 3(1)(f) is not available to the employer on the automatic enrolment date, the employer must give the trustees or managers of the occupational pension scheme or the personal pension scheme provider that information within six weeks from the date on which the employer receives it.

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An employer must, on or after the automatic enrolment date, deduct any contributions payable by the jobholder to the scheme, from ... qualifying earnings or pensionable pay due to the jobholder ....

Opting Out

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• (1) A jobholder who has become an active member of an occupational pension scheme or a personal pension scheme in accordance with arrangements under section 3(2) of the Act, may opt out by giving their employer a valid opt out notice obtained and given in accordance with this regulation.

• (2) Where the jobholder has become an active member of an occupational pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the later of—

• (a) the date on which the jobholder became an active member of the scheme in accordance with regulation 6(1)(a), or

• (b) the date on which the jobholder was given the enrolment information.

• (3) Where the jobholder has become an active member of a personal pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the date on which the agreement was deemed to exist under regulation 6(2).

• (4) Subject to paragraph (5), the jobholder may only obtain an opt out notice from the scheme in which the jobholder is an active member.

• (5) Where the jobholder is an active member of a scheme which is an occupational pension scheme and that scheme has, in its trust instrument, expressly delegated its administrative functions to the employer, the jobholder may obtain an opt out notice from that employer.

• (6) An opt out notice is valid if—

• (a) it includes the wording set out in Schedule 1;

• (aa) it includes statements from the jobholder to the effect that the jobholder wishes to opt out of pension saving and understands that, in so doing, the jobholder will lose the right to pension contributions from the employer and may have a lower income upon retirement;

• (b) it includes the jobholder's name;

• (c) it includes the jobholder's national insurance number or date of birth;

• (d) it is signed by the jobholder or, where the notice is in an electronic format, it must include a statement confirming that the jobholder personally submitted the notice; and

• (e) it is dated.

• (7) Where the employer is given an opt out notice which is not valid—

• (a) the employer must inform the jobholder of the reason for the invalidity, and

• (b) paragraphs (2) and (3) are modified so that for the reference to “one month” there is substituted “ ;6 weeks ”.

• (8) Where an employer has accepted as valid an opt out notice prior to the coming into force of the 2013 Regulations, the notice is deemed to be valid on the coming into force of the 2013 Regulations.

• (9) In this regulation “the 2013 Regulations” means the Automatic Enrolment (Miscellaneous Amendments) Regulations 2013.

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