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  • FIRST POST
    • emptyhead
    • By emptyhead 16th Sep 17, 1:16 PM
    • 1Posts
    • 0Thanks
    emptyhead
    Small company.
    • #1
    • 16th Sep 17, 1:16 PM
    Small company. 16th Sep 17 at 1:16 PM
    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.
Page 1
    • Paul_Herring
    • By Paul_Herring 16th Sep 17, 1:50 PM
    • 6,179 Posts
    • 2,905 Thanks
    Paul_Herring
    • #2
    • 16th Sep 17, 1:50 PM
    • #2
    • 16th Sep 17, 1:50 PM
    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.
    Originally posted by emptyhead
    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-dates

    Automatic 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.aspx
    Conjugating the verb 'to be":
    o I am humble
    o You are attention seeking
    o She is Nadine Dorries
    • CommyTooper
    • By CommyTooper 19th Sep 17, 6:50 PM
    • 19 Posts
    • 14 Thanks
    CommyTooper
    • #3
    • 19th Sep 17, 6:50 PM
    • #3
    • 19th Sep 17, 6:50 PM
    Wasted my time posting here. Go to pensions forum.
    Last edited by CommyTooper; 12-10-2017 at 8:45 AM.
    Live life .... juss like that
    • McKneff
    • By McKneff 19th Sep 17, 7:10 PM
    • 35,644 Posts
    • 45,883 Thanks
    McKneff
    • #4
    • 19th Sep 17, 7:10 PM
    • #4
    • 19th Sep 17, 7:10 PM
    I wouldnt be trouncing in and be confronting any one, specially the boss or he might be paying into only 6 employees pension.
    No one can make you feel inferior without your consent
    • Eltel1802
    • By Eltel1802 6th Oct 17, 3:02 AM
    • 3 Posts
    • 0 Thanks
    Eltel1802
    • #5
    • 6th Oct 17, 3:02 AM
    • #5
    • 6th Oct 17, 3:02 AM
    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!
    • Eltel1802
    • By Eltel1802 6th Oct 17, 3:04 AM
    • 3 Posts
    • 0 Thanks
    Eltel1802
    • #6
    • 6th Oct 17, 3:04 AM
    • #6
    • 6th Oct 17, 3:04 AM
    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!
    • Paul_Herring
    • By Paul_Herring 6th Oct 17, 7:42 AM
    • 6,179 Posts
    • 2,905 Thanks
    Paul_Herring
    • #7
    • 6th Oct 17, 7:42 AM
    • #7
    • 6th Oct 17, 7:42 AM
    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 Dorries
    • xylophone
    • By xylophone 6th Oct 17, 4:02 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    • #8
    • 6th Oct 17, 4:02 PM
    • #8
    • 6th Oct 17, 4:02 PM
    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.
    • TBagpuss
    • By TBagpuss 9th Oct 17, 8:23 PM
    • 6,038 Posts
    • 7,787 Thanks
    TBagpuss
    • #9
    • 9th Oct 17, 8:23 PM
    • #9
    • 9th Oct 17, 8:23 PM
    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.
    Originally posted by xylophone
    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.
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