TXM Plant Ltd - Auto Enrolment

My Ref: MRP 1/8/1


                                                                                                         9th October 2013


                                                                                                         Circular Num: NP/274 /13


To: The Secretary All Branches & Regional Councils


Dear Colleagues,



As you will be aware as a result of Government legislation in the form of the Pensions Act 2008, all employers are responsible for automatically enrolling employees who are not currently saving for their retirement into a workplace pension arrangement.


One such employer, TXM Plant Limited, have been given a staging date of January 2014 when they will have to Auto Enrolling ‘Eligible Jobholders’ into a qualifying pension arrangement.


For an employee to be an Eligible Jobholder the following criteria must be met:


·         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

·         Work or ordinarily work in the UK (under their contract)


It is also mandatory for employers to contribute to an employee’s future retirement provision and in the case of Defined Contribution schemes the following phased minimum contribution rates will apply:


Phasing Period            Minimum % of qualifying earnings 


Employer Minimum        Contribution


1st October 2012 to
30th September 2017




1st October 2017 to
30th September 2018




1st October 2018





Employers are required to make contributions based on qualifying earnings between £5,668 and £41,450 (2013-14).


In line with this legislation, TXM Plant Limited has proposed to Auto Enrol employees using the above minimum guidelines.


In consideration the RMT General Grades Committee adopted the following report from the Pension Industry Wide Sub Committee on 8th October 2013 in relation to TXM Plant Limited:


“That we note the position that the company are offering the bare minimum, however, the General Secretary is to make sure our Lead Organisers and our representatives try to make improvements to these minimum issues at every level they can.”


I would therefore request in line with this decision that those RMT Lead Organisers and representatives involved in discussions with employers in relation to pensions try to make every effort to ensure that the best Auto Enrolment arrangements are made where possible.


Yours sincerely,


R. Crow

General Secretary