What is an auto-enrolment pension?

In order for a scheme to be Automatic Enrolment compliant it must:

  • Allow employees to be Automatically Enrolled without making a choice
  • Require no forms to be completed
  • Have a default investment choice for the scheme
  • The scheme must be set up to deal with Opt-out requests
  • The Annual Management charge for the default fund must be 0.75% or lower. The Annual Management Charge covers the scheme running costs of the pension provider and is deducted directly from an employee’s fund.