Vodafone pensions

Q&As

Auto-enrolment

WHAT IS AUTO-ENROLMENT?

Auto-enrolment was introduced by the Government to encourage people to save for their retirement. It requires all employers to enrol employees who meet certain criteria into their workplace pension arrangements. Vodafone automatically enrols all new employees into the Plan within three months of starting work. If, after you have been enrolled into the Plan you choose to stop contributing, you will be re-enrolled by Vodafone in the future.

WHY WAS AUTO-ENROLMENT INTRODUCED?

The Government introduced auto-enrolment for a number of reasons:

  • To encourage people to save - you're getting a regular income from Vodafone at the moment, but have you thought about where your money will come from when you retire and stop working? Auto-enrolment encourages people to save for retirement in their employer's pension arrangement by taking away the barriers to joining.
  • To allow for a longer retirement - people are living longer in retirement, which means that they need to save more so that they have an income that lasts for as long as they live.
  • To stop people relying on the State Pension. Saving into a pension will help you boost your income.
CAN I STOP MYSELF MAKNG CONTRIBUTIONS INTO THE PLAN?

No. You can stop your contributions as soon as you have been enrolled, but not before.

WHEN WILL I BE AUTO-ENROLLED?

Vodafone enrols all new employees into the Plan within three months of starting work. You will receive an email from MyChoices shortly after you join Vodafone or every three years from April 2016.

If you don't want to save for retirement, you can choose to cease contributions into the Plan. However, if you choose to do this, you will automatically begin making contributions again once every three years from April 2016.

WHAT HAPPENS IF I DON’T CONTRIBUTE INTO THE PLAN

If you don't want to save for retirement, you can cease contributions into the Plan. However, you will miss out on Vodafone’s contributions paid into your pension. Every three years, Vodafone reviews and re-enrols employees who are not contributing into the Plan.

I PREVIOUSLY STOPPED MAKING CONTRIBUTIONS INTO THE PLAN, WHY HAVE I BEEN RE-ENROLLED?

Every three years from April 2016, Vodafone re-enrol employees that are not contributing into the Plan. If you ceased your contributions previously, you will have automatically started making these contributions into the Plan in April 2019, with a personal contribution rate of 3% of basic salary and a 6% of basic salary contribution from Vodafone.

HOW CAN I OPT OUT OF MAKING CONTRIBUTIONS INTO THE DEFINED CONTRIBUTION PLAN?

You can opt out of making contributions if you don’t want to save for retirement in the Plan.

For more information please see www.vodafonepensionsupdate.co.uk/my_account/opting_out_of_the_dc_plan

Remember, if you opt out you'll be missing out on:

  • an income from the Plan when you retire; and
  • extra money from Vodafone.
I'VE OPTED OUT, CAN I START MAKING CONTRIBUTIONS AGAIN?

Yes. You can start making contributions into the Plan at any time. Please visit MyChoices to arrange this.

WHY HAS MY PENSION CONTRIBUTION RATE INCREASED?

From April 2019, the minimum contribution rate, set by the Government, is increasing. As a result, Vodafone increased its minimum default member contribution rate from 2% to 3% of basic pay. In addition, Vodafone will increase its contribution rate from 4% to 6% of basic salary. The option to contribute 2% to the Plan is no longer available.

This affected you from 1 April 2019 if:

  • You were paying 2% into the Plan, as the contribution from you and Vodafone increased to 3% and 6% respectively.
  • You’ve previously opted out of making contributions into the Plan. Every three years, Vodafone reviews and re-enrols employees who are not contributing into the Plan.
  • You have been be re-enrolled with a contribution rate of 3% and receive a 6% contribution from Vodafone.

The good news is that Vodafone’s contribution is more than the Government requires. This means that more money is going into your pension account for when you get older.

If you would like to find out more about these changes, have a look on the Vodafone pensions website at http://www.vodafonepensionsupdate.co.uk/documents/ae_escalation.pdf

WILL MY CONTRIBUTION RATE CHANGE AGAIN?

The Government has not announced plans for minimum contribution rates to increase further. However, this may change in the future. Vodafone will keep you informed of any future changes.