For new joiners
If you’re eligible to be automatically enrolled into the Scheme, you’ll join after your first full month working for NFU Mutual. You’ll be entered into the Scheme at the minimum contribution rate of 4% and your contributions will be invested in the default investment strategy, which is the Drawdown Lifestyle strategy.
Eligible employees are those:
- working in the UK
- earning more than £10,000 a year
- between age 22 and State Pension age.
Other ways to join the Scheme
If you’re not eligible to be automatically enrolled because you’re under age 22, over State Pension age, or you earn less than £10,000 a year, you can still choose to join the Scheme by completing an application form.
By applying to join the Scheme instead of being automatically enrolled, you can take advantage of the higher contribution rates offered by NFU Mutual from day one. All you need to do is complete an application form saying how much you want to contribute each month.
Why should I join the Scheme?
All eligible employees are automatically enrolled into the Scheme and there are a lot of good reasons to be in your workplace pension. Firstly, NFU Mutual helps you save for retirement by paying money into your personal account (on top of the money you pay in yourself). If you opt out of the workplace pension scheme, you wouldn’t get this extra contribution.
Another reason to stay in the Scheme is that the government wants to help people save for their future, so you don’t pay tax on your pension contributions. This means it costs you less than you might think. If you’re a basic-rate taxpayer, every £1 you pay into your pension actually only costs you 80p. Paying your contributions using SMART further reduces the cost of every £1 to 68p.
In addition to this ‘free money’, being in a workplace pension is easy. NFU Mutual sets it all up for you, so you don’t have to think about setting up direct debits or any of the other hassles you might have in taking out a personal pension.
As a member of the Scheme, you would also be entitled to ill-health early retirement or death-in-service cover which would provide benefits for your spouse and children.
How much does it cost?
The minimum member contribution is 4% of your pay. Your contributions are eligible for tax and NI relief, so each £1 you save costs 68p (for a basic-rate taxpayer). If you want to save more than the minimum, you’ll also get additional contributions from NFU Mutual: the more you pay, the more NFU Mutual pays.
|You pay||NFU Mutual pays||Total paid into your personal account|
|8% or more||12%||20% or more|
You can use our Cost Calculator to work out the cost to you.
What happens to my contributions?
The money paid in by you and NFU Mutual is added to your personal account and invested. When you join, your contributions will be automatically invested in the Scheme’s default investment option, the Drawdown Lifestyle Strategy. Once you’ve joined the Scheme, you will receive an email from the Scheme’s third-party administrators, Trafalgar House providing you access to their online member access site My Work Pension. You can choose how you want your contributions to be invested through My Work Pension but please note if your contributions have already been sent for investment, you won’t be able to change your investment selection until the investment cycle has completed.
What is SMART?
Also known as salary sacrifice, SMART stands for save money and reduce tax. It’s a way of paying into your pension which reduces the cost of your contributions to you by making National Insurance (NI) savings. NFU Mutual makes a contribution on your behalf into your personal account and then reduces your salary by the same amount.
Do I have to pay contributions using SMART?
Most members do pay into their pension the SMART way. However, it’s not suitable for everyone and you can choose to pay your contributions via deduction from salary instead, but you won’t make National Insurance savings.
You can’t pay the SMART way if it would result in reducing your salary to below the National Minimum Wage (or National Living Wage, if you’re over 25). It’s also not possible to sacrifice statutory pay, for example maternity, paternity, adoption or sick leave.
Why have I been automatically enrolled?
The law requires employers to automatically enrol eligible employees into a workplace pension and that both the employer and employee make contributions towards it. Once enrolled, employees have the option to leave the Scheme (opt out).
If you opt out of the Scheme, NFU Mutual will have to automatically re-enrol you every three years or when you reach a certain age or salary level.
Can I opt out of the Scheme?
New eligible employees are automatically enrolled into the DC Section following the first full month of working for NFU Mutual, but it’s not a condition of your employment to be or remain a member of the Scheme. Details of how to opt out are included in your enrolment letter which you should receive from NFU Mutual around the time that your first contribution is deducted. Please note that it is not possible to opt out until you have received this notification letter.
About My Work Pension
As a member of the Scheme, you can manage your personal account online using My Work Pension, the secure pensions website provided by the Scheme administrator, Trafalgar House. You'll receive My Work Pension registration details when you are entered into the Scheme. We encourage you to sign up to My Work Pension as soon as possible to inform us how you would like your contributions to be invested. If you don't let us know how to invest your funds, we'll invest it into the default lifestyle strategy.
You’ll need to register and follow the login details to activate your account on your first visit but once your account is set up, you can log into My Work Pension via this website at any time.
You can use My Work Pension to:
- check and update your personal details
- check the balance of your personal account
- make changes to your investments
- request a retirement quote
- review and update your expression of wish.
Forms to complete
Please make sure that you complete this form and submit it to payroll: