R04 Workplace pensions and automatic enrolment: free practice questions

1. Question 1 of 5

   Which worker is an eligible jobholder who must be automatically enrolled in 2026/27?

   Option A: Aged 30 and earning £8,000 a yearOption B: Aged 30 and earning £26,000 a yearOption C: Aged 70 and earning £40,000 a yearOption D: Aged 20 and earning £26,000 a year

   Show answer

   The answer is B: Aged 30 and earning £26,000 a year

   Eligible jobholders are aged 22 to State Pension age and earn over £10,000 a year.

   Why the other options are wrong

   A

   Earnings of £8,000 make them a non-eligible jobholder.

   C

   Over SPA they're a non-eligible jobholder.

   D

   At 20 they're a non-eligible jobholder who can opt in.

2. Question 2 of 5

   What is the joining window for automatic enrolment?

   Option A: Six weeks from the jobholder's enrolment dateOption B: One month from the end of any postponement periodOption C: Three months from the date the worker startedOption D: Six weeks from the employer's chosen deferral date

   Show answer

   The answer is A: Six weeks from the jobholder's enrolment date

   The employer must complete the enrolment steps, including giving information, within six weeks of the enrolment date.

   Why the other options are wrong

   B

   One month is the opt-out period.

   C

   Three months is the postponement limit.

   D

   The window runs from the jobholder's enrolment date.

3. Question 3 of 5

   If an employer pays only 3%, the worker pays the 5% balance under relief at source. What does that 5% actually cost the worker?

   Option A: 4% of qualifying earningsOption B: 2% of qualifying earningsOption C: 5% of qualifying earningsOption D: 3% of qualifying earnings

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   The answer is A: 4% of qualifying earnings

   The worker's contribution is paid net of basic rate tax: 5% gross costs them 4%, with 1% coming from tax relief.

   Why the other options are wrong

   B

   2% overstates the relief.

   C

   5% is the gross amount before relief.

   D

   3% overstates the relief.

4. Question 4 of 5

   Which worker does NOT have the right to opt out?

   Option A: A jobholder who opted back in after previously opting outOption B: An employee enrolled under their employment contractOption C: An eligible jobholder who was automatically enrolledOption D: A non-eligible jobholder who chose to opt in to the scheme

   Show answer

   The answer is B: An employee enrolled under their employment contract

   Those enrolled contractually, and entitled workers who asked to join, can't opt out; they must cease membership under the scheme rules.

   Why the other options are wrong

   A

   Those who opted back in can opt out.

   C

   Automatically enrolled jobholders can opt out.

   D

   Non-eligible jobholders who opted in can opt out.

5. Question 5 of 5

   Why must NEST accept any employer that wants to use it?

   Option A: A public service obligation to give every employer accessOption B: It is owned and run directly by The Pensions RegulatorOption C: It charges more than the other master trusts in the marketOption D: It is the only scheme that qualifies for automatic enrolment

   Show answer

   The answer is A: A public service obligation to give every employer access

   NEST was set up by the Government and must accept all business, however small or unprofitable, unlike commercial schemes such as The People's Pension.

   Why the other options are wrong

   B

   TPR doesn't own NEST.

   C

   Charges aren't the reason.

   D

   Employers can use any qualifying scheme.

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