Reminder about inducement to opt out

The fund has been made aware of a national issue involving a council job advert offering an additional cash allowance if staff opt out of the LGPS.

The fund is not aware of any employers in the Shropshire County Pension Fund doing anything similar but we would like to remind all our employers that encouraging employees to opt out of a workplace pension scheme is against the safeguards introduced by the Pensions Act 2008.

The safeguards prohibit employers from discouraging members from joining or remaining in a workplace pension scheme (such as the LGPS). Please see Automatic enrolment detailed guidance no.8 (safeguarding individuals) for more information.