Existing Pension Arrangements

It is possible to keep an old pension scheme in place, so long as the contribution rates are at least comparable with the minimum levels required under the Automatic Enrolment rules. This is known as Certification and a scheme can be certified for up to 18 months at a time. There are pitfalls which require to be considered.

The existing scheme Provider may not be in the market for Auto Enrolment and subsequently not interested in helping out by providing software or template letters to help with the process. In all likelihood another scheme may need to be set up to run alongside or to replace such a scheme. Some employers are using the National Employment Savings Trust scheme (NEST) to run alongside good quality Pension Schemes in such circumstances.