Archive for the ‘Auto-enrolment’ Category

McDonalds serves up a very low pension opt out rate

McDonalds LogoMcDonald’s says only 2.4% of its hourly-paid and 2.7% of its salaried employees that were auto-enrolled on 1 January 2013 opted out of pensions.

McDonalds has 91,000 employees in the UK. Of those 35,000 are hourly paid.

"There were already 2,000 of it’s salaried employees that were members of their stakeholder defined contribution (DC) pension scheme.

An additional 1,100 salaried staff were auto-enrolled into this scheme.

A total of 9,500 hourly-paid employees were auto-enrolled into the National Employment Savings Trust (Nest) in January.


The demographics of the McDonalds workforce would lead you to suspect that opt-outs would be high. The low rates they have achieved will be welcome news for the government but bad news for employers looking to estimate how many of his own employees will opt-out.

Steve Clark

Photo Courtesy of Flickr – Leonid Mamchenkov

Automatic Enrolment Earnings Triggers

In case you didn’t see it amongst all the furore about Boris Johnson’s interview with my old school mate Eddie Mair; the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band)Order 2013 – SI 2013/667, was recently laid before Parliament. This comes into force on 6 April 2013.

The earnings thresholds for 2013/14 are as follows:

  • Automatic enrolment eligibility earnings trigger £9,440
  • Lower qualifying earnings band limit £5,668
  • Upper qualifying earnings band limit £41,450

We’ll be discussing these with 44 Financial clients (if they impact on you at our next pension reform meeting. If you are not already one of our clients and all this is news to you – give us a call on 0116 260 5443 to book an initial consultation at our cost.

If, on the other hand, you want to see Boris Johnson squirm see the BBC interview here.

Steve Clark