Enhance: Construction Pension Scene, Northern Ireland

Enhance

A selection of Frequently Asked Questions about Enhance.

Frequently Asked Questions

Why should I choose the Enhance Pension Scheme?

  • The Belfast based administration team has been delivering pensions to the NI Construction industry since 1982
  • Local help desk for employer and employees
  • Simple on-line administration system
  • Lump sum death in service cover £30,000

When do I have to comply with Auto-enrolment legislation?

Your ‘staging date’ is the date on which you must comply with the requirements and is based on your payroll size as at 1 April 2012.

 

As the Pensions Regulator will impose fines for non-compliance, it is important that employers check their staging date as follows:

 

 

Further guidance on identifying your staging date is available from the Pensions Regulator website.

 

If in doubt contact the Pensions Regulator on 0345 600 1011.

Is Enhance a qualifying Scheme for auto-enrolment?

Enhance is a long established contractual arrangement and is a qualifying scheme which is fully compliant with auto-enrolment requirements.

 

Employers using Enhance - Construction Pension Scheme Northern Ireland are well on the way to complying with auto-enrolment legislation, provided all employees eligible to join Enhance are enrolled by the staging date.

 

As your staging date approaches, you will need to complete a number of processes to demonstrate that the company complies with the legislation. For further details click here

I already use the Enhance Scheme. What do I need to do to ensure I comply with auto-enrolment?

Employers using Enhance are well on the way to complying with auto-enrolment legislation, provided all your employees who are eligible to join Enhance are enrolled by your staging date. 

 

As your staging date approaches, you will need to complete some formalities to demonstrate that the company complies with the legislation. These include: 

  • Review pension arrangements for all employees. If you have other pension providers you will need to liaise with them regarding compliance.

  • Give all non-contributing employees the opportunity to contribute, and retain written consent.

  • Have a certificate to show that Enhance is a qualifying scheme for auto-enrolment. 

    Download a template certificate.

    This certificate is strictly for issue to current Enhance participating employers only.

  • Register compliance with auto-enrolment within 5 months of the staging date via The Pensions Regulator website.

Can I include all employees in the Enhance Scheme?

Enhance accepts all employees engaged in the construction industry whether site based or office based. 

 

For employees from non-construction related areas of your business why not consider Workers Pension Trust.

 

Workers Pension Trust is a basic workplace pension scheme which is designed to complement Enhance and is fully compliant with auto-enrolment legislation.

How is the Enhance Scheme administered?

The Enhance scheme provides an on-line administration system which is simple and easy to use.

What contributions am I required to pay?

The minimum levels of pension contribution due to the Scheme increase as shown in the table below:

Date of Introduction

December 2012

December 2013

December 2014

December 2016

Employer Contributions

2%

3%

3%

4%

*Employee Contributions

2%

3%

4%

5%

Total Contribution

4%

6%

7%

9%

* Employee Contributions include basic rate tax relief

 

Please see the Pension Contributions page for more details.

Contributions are kept under review by the Joint Council for the Building & Civil Engineering Industry (Northern Ireland) and are subject to change.

How are contributions invested?

When joining the Scheme, Members are asked to choose which investment fund(s) they would like their contributions to be invested in. The investment funds available are:

 

  • Enhance Growth Fund
  • Enhance Volatility Reduction Fund
  • Enhance Capital Protection Fund
  • Enhance Annuity Protection Fund
  • Enhance Diversified Fund
  • Enhance Index-linked Gilts Fund

 

Members can choose to invest their contributions in one or more of the 6 funds available. If the member does not choose to invest in any of the 6 funds, the contributions made will be invested in the default Lifestyle Strategy.

 

The default Lifestyle Strategy means that contributions are invested in a combination of the Enhance Growth Fund, the Enhance Capital Protection Fund and the Enhance Volatility Reduction Fund from joining the Scheme until retirement.  

 

The value of the Member's Account, and the pension that it produces, is dependent on the contributions paid in, the investment growth achieved, and the annuity rates available at retirement i.e. the rate used to convert the fund into a pension. 

 

Members can change their investment fund(s) at any time by completing the Investment Option Form and returning it to the Scheme at 143 Malone Road, Belfast BT9 6SX.

Who invests the contributions?

Enhance Trustee Limited, the corporate trustee, invests the contributions on behalf of Members.

If employees opt out do I still have to pay contributions for them?

From 5th December 2016, the employer is no longer required to pay employer contributions if the employee is not contributing. The employer will continue to pay the contribution towards death in service benefit only.

 

Employers are reminded that it is against the law to encourage or offer inducements to employees to opt out. Penalities issued by the Pensions Regulator include fines up to £50,000 or 2 years in prison.

Can employees transfer their pension pot from an existing pension scheme?

Yes. Enhance can accept transfers in from other pension schemes.