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Small company.
emptyhead
Posts: 1 Newbie
Hi, the company I work for only employs 7 people, a friend of mine told me the company does not have to offer me a pension because its to small. Is this the case? I need to know before I confront the MD and ask why we have no pension yet.
Thanks.
Thanks.
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Comments
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Hi, the company I work for only employs 7 people, a friend of mine told me the company does not have to offer me a pension because its to small. Is this the case? I need to know before I confront the MD and ask why we have no pension yet.
Thanks.
Your friend is wrong. Every company with more than zero employees (unless it's a sole director) should be offering auto-enrolment:
https://www.gov.uk/government/news/new-timetable-clarifies-automatic-enrolment-starting-datesAutomatic enrolment will begin in October 2012. All existing firms will have enrolled their staff by April 2017, followed by all new employers by February 2018.
The level of pension contributions will be phased in over time to help employers and individuals adjust. Full contributions will have to be paid from 1 October 2018.
You can find out when you should have started auto enrolment here: http://www.thepensionsregulator.gov.uk/employers/staging-date.aspxConjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Wasted my time posting here. Go to pensions forum.0
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I wouldnt be trouncing in and be confronting any one, specially the boss or he might be paying into only 6 employees pension.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Hi, to clarify. All companies, regardless of employee numbers have to offer a pension scheme or have one. The employer (aka the company) also had to pay a minimum amount into each employees pension 'pot'. I believe this is currently set at 2% but the Regulator changes the rules on pensions frequently so don't take this as being 100% correct (you can easily google it to find out current minimums).
However, an employer could give its employees an amount each month which covers the minimum provision required by them, to their employees as cash. The employer is still providing what they have to buy basically leave it to each individual to decide if they want to put the amount into a pension or not (if not you have to formally 'opt out'). This is obviously appealing to the younger generation which would usually take the cash!
Warning though - taking the amount as cash is likely to result in it being taxed.
Finally, a recent change in rules means all employers have to auto enroll all employees not already in the pension scheme they offer. So if you don't want this you will have to 'opt out' every 2 years - but you will be contacted to explain and to give you this option with instructions on how to do it so don't worry!0 -
And apologies, I forgot to say that each employer is written to by HMRC to inform them of their regulatory start date. So it's not one date for all. Should an employer ignore this or say they haven't received any confirmation from HMRC that will not wash with the powers that be!0
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However, an employer could give its employees an amount each month which covers the minimum provision required by them, to their employees as cash.
That's a new one on me - because that sounds like simply wages. There's nothing stopping an employer not raising wages and simply saying "from DATE, the last 2% of your gross wage is your 'pension.'" It also goes against the aim of encouraging people to contribute to a pension, with the tax breaks it gives.
Citation please?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
That's a new one on me - because that sounds like simply wages.
RBS Value Account? Page 10
https://rbs.tbs.aon.com/RBS/media/default/PDFs/Current%20Pension%20Plan/Pensions_Explained_181016_2.pdf
I get Pension Funding of 15% of my salary
(as part of my ValueAccount).
No matter what elections I make, the total pension
cost currently paid by the bank is 15%.
My RBSelect charge is determined by me through
my RBSelect elections. I can choose how much of my
Pension Funding l pay into my pension.0 -
RBS Value Account? Page 10
https://rbs.tbs.aon.com/RBS/media/default/PDFs/Current%20Pension%20Plan/Pensions_Explained_181016_2.pdf
I get Pension Funding of 15% of my salary
(as part of my ValueAccount).
No matter what elections I make, the total pension
cost currently paid by the bank is 15%.
My RBSelect charge is determined by me through
my RBSelect elections. I can choose how much of my
Pension Funding l pay into my pension.
That sounds like an employer who will offer *more* than the required minimum. Currently, the employer has to pay 1% of salary and take 1% from the employee.
It read as though RBS will put in more than that, but that employees can chose ho much of the extra they want as pension.
For employees which only pay the minimum requirement, there is not a choice to have it as cash instead. As an employee, you can opt out, but if you do, the employer is not under any obligation to give you the 1% (or more) that they would otherwise have been putting into your pension.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0
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