Employees Requesting To Join The 50/50 Scheme
These pages are for employer use only. Member information can be found on the home page.
From 1 April 2014, members have a choice between paying into the main scheme or the 50/50 section of the scheme. In the 50/50 section, a member can choose to pay half of the employee contributions in exchange for half of the benefits received in the main section of the Scheme.
Members who are interested in joining the 50/50 section can be encouraged to visit the member’s section of the website.
Some important points for employers to note:
- Members with multiple employments can be in the 50/50 section for one employment and the main section in the other(s) or any other similar combination.
- For all members of the 50/50 Scheme, following re-enrolment (under auto enrolment legislation) all of these members should be re-enroled in the main section of the Scheme, even if they are not an eligible jobholder. Also, employers will need to make members aware of this change and that the member has the right to sign another form to stay in the 50/50 section. Note that even if a member has elected for the 50/50 section, just before the re-enrolment date they will still need to be put back into the main section with effect from the re-enrolment date.
- For any member who goes on to no pay as a result of sickness or injury, these members should be re-enroled into the main section of the scheme from the beginning of the next pay period following the date the member went onto nil pay.
Changing between the 50/50 and Main Section
The default option should always be for members to join the main section of Scheme (for auto enrolment and re-enrolment purposes). However, a member can opt to change from one section to the other by completing a 50-50 section election form.
What you need to do upon receiving a 50/50 section election form?
Whenever a member changes between one section of the Scheme and another you need to:
- Ensure you make (or instruct your payroll provider to do so) the appropriate adjustment to the employee’s contributions on your payroll system
- Ensure that the figures on your monthly contribution return are adjusted accordingly to reflect the change
At the end of each year, we will use the total accumulative figures from the monthly return to calculate the amount of pension each member has relating to each section of the Scheme.
Note: Employer’s contribution rates are the same regardless of whether or not a member is in the main or 50/50 section of the Scheme.