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Does having salary sacrifice for private pension mean I won't be auto-enrolled? 

No! Having a salary sacrifice arrangement for a private pension with Nasa does not prevent you from being auto-enrolled into our workplace pension. Both arrangements will run alongside each other.

Why both schemes continue

Legal obligation
NASA has a legal obligation under auto-enrolment legislation to:

  • Assess all eligible employees for workplace pension enrolment
  • Enrol you into a qualifying workplace pension scheme if you meet the criteria
  • This obligation exists regardless of any other pension arrangements you have

Separate Arrangements

  • Salary sacrifice for private pension = voluntary arrangement you've chosen
  • Auto-enrolment workplace pension = legal requirement NASA must fulfil
  • They serve different purposes and can run together

 

How it works in practice

If you have salary sacrifice for a private pension and are auto-enrolled:

Your payslip will show:

  • Salary sacrifice deduction for your private pension
  • Standard workplace pension contributions (5% employee, 3% employer)
  • Both arrangements get their respective tax benefits

Different Tax Treatment

  • Private pension via salary sacrifice: Saves both income tax and National Insurance
  • Workplace pension: Net pay arrangement - saves income tax only (you still pay National Insurance on gross pay)

Key Takeaways

  1. Both arrangements will continue - salary sacrifice doesn't prevent auto-enrolment
  2. NASA must auto-enrol you - it's a legal requirement we cannot avoid
  3. You can opt out after enrolment 
  4. Consider total pension strategy - both arrangements together might be very tax-efficient
  5. Budget carefully - make sure total contributions are sustainable