Please note: the content on this page was updated following the publication of the Finance (No. 2) Act 2023. Furthermore, the Government has stated its intention to abolish the Lifetime Allowance (LTA) from the 2024/25 tax year. Once the details have been published, we will make the necessary updates to the page.
What is auto enrolment?
Auto enrolment was introduced in 2012 and is a legal requirement for UK employers to set up a workplace pension scheme, putting all qualifying employees into the pension scheme and contribute to their pension savings.
Things to be aware of.
It is important that clients understand the impact auto-enrolment can have if they currently hold, or apply for, lifetime allowance protection.
Any client inadvertently enrolled will have one month from the auto enrolment date to opt out of the new scheme. If they fail to opt out within this time, they will lose their protection.
This applies to clients with:
Employers have a duty every three years to automatically enrol employees who have opted out. Therefore, clients will need to opt out within one month of each three-year anniversary to avoid losing their protection.