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