Need some help

fattony

I dont have a very proactive boss and Im aware that in 2012 they will have to contribute to a pension scheme for all employees but what I dont want is to start a pension and in 3 yearshave to move it etc to the one the company decides to set up.

I've heard that the employer would get a tax / national insurance relief for paying into a pension - is this correct?

What Im planning to do is put a proposal together to present to my boss what it would actually cost to pay into a pension scheme, so say I pay in £100 a month and my boss paid in £50 would he save that £50 in National insurance payments?

waynedance

Good thinking I would like to see the answer to this question also.

fattony

can anyone offer some advice on this?

dunstonh

The contributions from 2012 are incremental. It is effectively a 3% pay rise. So the employer may not be willing to give up some of their NI saving. However, if they are then its possible and its called salary sacrifice. However, the saving is not significant.

Many employers are already factoring in pay rises at a level to take account the Personal Accounts. Others dont seem to know its coming and are in for a shock. Although they will probably suspend/reduce pay rises for a few years to cover it.

These are discussions you need with the employer and the sooner the better. If they go with the Govt scheme then you wont be able to do salary sacrifice and investment options will be limited as well as potentially lower equivalent tax relief. Ideally you want to be getting the employer to operate a group personal pension scheme or to pay into your individual scheme. The number of employees will have an impact on what they do as well.