The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019

JurisdictionUK Non-devolved
CitationSI 2019/374

2019 No. 374

Pensions

The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019

Made 26th February 2019

Coming into force 6th April 2019

The Secretary of State for Work and Pensions has considered whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) of the Pensions Act 20081should be increased or decreased, as required by section 14(1) of that Act2.

A draft of this Order was laid before Parliament in accordance with section 143(4) and (5)(c) of that Act3and approved by a resolution of each House of Parliament.

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 14(2), 15A(1) and 144(4) of that Act4.

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019.

(2) This Order comes into force on 6th April 2019.

(3) In this Order, “the Act” means the Pensions Act 2008.

S-2 Increase of amounts

Increase of amounts

2. In section 13(1) of the Act (which deals with qualifying earnings and the amounts constituting the lower and upper thresholds of the qualifying earnings band)—

(a) in paragraph (a), for “£6,032” substitute “£6,136”;

(b) in paragraph (b), for “£46,350” substitute “£50,000”.

S-3 Rounded figures

Rounded figures

3. For a pay reference period referred to in an entry in column 1 of the table—

(a) the amount of a jobholder’s earnings which triggers the automatic enrolment, or as the case may be, the automatic re-enrolment of the jobholder pursuant to sections 3 and 5 respectively of the Act, is the rounded figure5in the corresponding entry in column 2 of the table;

(b) the lower amount of qualifying earnings (see section 13(1)(a) of the Act), is the rounded figure in the corresponding entry in column 3 of the table6;

(c) the upper amount of qualifying earnings (see section 13(1)(b) of the Act), is the rounded figure in the corresponding entry in column 4 of the table7.

Table

Column 1

Column 2

Column 3

Column 4

Pay Reference Period

Automatic enrolment and automatic re-enrolment earnings trigger: Rounded figure

Lower amount of qualifying earnings: Rounded figure

Upper amount of qualifying earnings: Rounded figure

1 week

£192

£118

£962

2 weeks

£384

£236

£1,924

4 weeks

£768

£472

£3,847

1 month

£833

£512

£4,167

3 months

£2,499

£1,534

£12,500

6 months

£4,998

£3,068

£25,000

S-4 Revocation

Revocation

4. The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 20188is revoked.

Guy Opperman

Parliamentary Under Secretary of State

Department for Work and Pensions

26th February 2019

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision under sections 14 and 15A of the Pensions Act 2008 (c. 30)(“the Act”).

For the purposes of the Act, a jobholder who earns qualifying earnings of a specified amount is automatically enrolled or, as the case may be, re-enrolled into a pension scheme (the revised figures which “trigger” automatic enrolment or re-enrolment can be found in article 3 of this Order). Once in the scheme, the pension contributions of such a jobholder are calculated by reference to qualifying earnings.

Section 13 of the Act...

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