An Introduction to Automatic Enrolment for employees

What is automatic enrolment? At present, many workers fail to take up valuable pension benefits because they do not make an application to join their employer's scheme. As a result, the Government has created a new initiative to make it easier for people to save for their retirement through their workplace, called automatic enrolment. This means that all employers must enrol their workers into a qualifying workplace scheme, if they are not already in one. Does this affect me? Employers have to automatically enrol workers who: Are not already in a qualifying workplace pension scheme; Are at least 22 years old; Are below state pension age; Earn more than 9,440 a year (based on 2013/14 figures); and Work or ordinarily work in the UK (under their contract) However, even if you do not qualify to be automatically enrolled, you still have the right to join the scheme. If you tell us that you would like to opt in to the scheme, we will allow you to do so. When is this happening? Automatic enrolment comes into effect for The Ambassador Theatre Group in September 2013. There will be a maximum three month waiting period before we must enrol you; however, if you are aged between 16 and 75 years and want to start saving straight away, you will be able to opt into the scheme. What if I don't want to be in a pension scheme? You can choose to opt out of the scheme at any time if you want to. If you opt out within a certain period (we will let you know of the deadline), any payments you have made will be refunded. If you leave the scheme after this, your contributions will not be refunded and your pension pot will remain in the Scheme. Rejoining the scheme If you have opted out, you can rejoin at a later date if you wish. We will also have a duty to automatically enrol you back into the scheme every three years, if you fall into the categories given above. This is to give you the opportunity to reconsider your decision.

How much will be paid into my pension pot? The amount of money paid in by you, The Ambassador Theatre Group and by the Government from tax relief is worked out as a percentage of your earnings. 'Tax relief' means that some of the money that would have gone to the Government in the form of tax now goes to your pension pot instead. The Government has set a minimum percentage that has to be contributed in total. This means your contribution, our contribution and the tax relief added together. This minimum increases gradually between 2012 and October 2018. Timing Minimum Total Percentage that has to go into your pot

October 2012 to September 2017 2% October 2017 to September 2018 5% October 2018 onwards 8%

Contributions to the pension scheme can exceed this minimum. Within that total contribution, the Government has also set a minimum percentage that has to be contributed by the employer. This will also increase gradually over time. Minimum that has to be Minimum that has to be contributed by the contributed by the employer employee 1% 3% 5%

Timing

October 2012 to September 2017 1% October 2017 to September 2018 2% October 2018 onwards 3%

Employers will be able to contribute more than the minimum if they wish; many already do. These minimum percentages do not apply to all of your salary, but on what you earn over a minimum (currently 5,668) up to a maximum limit (currently 41,450). If you are eligible to join or are currently in the Company Group Personal Pension Plan, pension contributions are based on basic earnings from the first pound. How can I find out more about automatic enrolment? We will write to you when it is time for us to start automatically enrolling you into our workplace pension scheme which will be with The Peoples Pension. This will explain what is happening and what you need to do.