Qualifying workplace pension scheme

Qualifying describes a statutory standard

A qualifying workplace pension scheme satisfies the qualifying criteria and the minimum requirements that apply to its scheme type. The test can differ for defined contribution, defined benefit and hybrid arrangements, so “we already offer a pension” is not enough evidence.

An employer with staff already active in a qualifying scheme may not need to automatically enrol those people again. The employer still needs to monitor whether the scheme remains qualifying and whether the person's active membership continues.

The Pensions Regulator's scheme guidance sets out the relevant criteria and minimum requirements.

Automatic-enrolment schemes have extra features

Every automatic-enrolment scheme must be qualifying, but not every qualifying scheme can be used for automatic enrolment. An automatic-enrolment scheme must also allow the employer to enrol or re-enrol a jobholder without barriers that require the person to make a choice or supply extra information to remain a member.

That distinction matters when an employer wants to keep an existing scheme for current members but needs another arrangement for people who must be automatically enrolled. GOV.UK tells employers to confirm an existing scheme meets the rules before relying on it.

Provider marketing that calls a scheme a workplace pension is not the compliance test. Ask for written confirmation of the criteria it meets and the contribution basis used.

Keep the evidence current

Record the scheme type, governing documents, provider confirmation, contribution basis and date of the employer's check. Review the position after a scheme-rule change, contribution change, provider migration or other event that could affect qualification.

The employer remains responsible for using a suitable arrangement even when a provider, adviser or payroll bureau supplies the paperwork. If the evidence is unclear, resolve it before treating existing membership as the reason not to enrol someone.