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Document updated/added on 03.04.2020

Topic: Pay and pensions

letter for entitled workers
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Letter for entitled workers

Letter for entitled workers

If you have any new entitled workers, you must write to them letting them know they have a right to join a pension scheme, but be aware this can be a different scheme to your qualifying workplace pension scheme.

Entitled workers

Entitled workers don’t have to be automatically enrolled into your qualifying workplace pension scheme and neither can they choose to be enrolled by opting in. Their right is simply to join a pension scheme, which could be different to your automatic enrolment scheme as it doesn’t need to be a qualifying pension scheme (although usually it will be the same one). You can also choose whether or not to make employer contributions for entitled workers who do join a scheme. Entitled workers are those who are aged at least 16 but under the age of 75 and earning less than £6,240 per year (for tax year 2020/21). So, it will only comprise a small number of part-time staff - indeed you may not even have any entitled workers at all. 

Letter provisions

You can use our Letter for Entitled Workers as it is or amend it accordingly but some of the information in the letter is required to be included by legislation, so don’t go deleting whole sections. This includes the worker’s right to join a pension scheme, details on how they go about doing this and what it means for them and a statement about where they can find further information about pensions and saving for later life. Our letter has been written on the assumption that the pension scheme will be a defined contribution one, your workers have an annual salary and are paid monthly. You’ll need to amend it if any of your circumstances are different to this.

Joining notice

An entitled worker can require you to put them into a pension scheme by choosing to join and serving a joining notice on you. You must then enrol them into a pension scheme and deduct their contributions and pay them into the scheme. However, you don’t need to make an employer contribution unless you choose to do so.

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