Employer Pension Contributions

miriam_d

Hi

I was just wondering if anyone could tell me or point me in the direction of information about the legal obligations upon an organisation to provide pension information and contributions to their employees.

thanks very much,

Miriam

McKneff

There is no legal obligation at the moment for employers to provide a pension or contriute to one, sorry.

Evilm

There is a short summary here for the changes due to happen in October 2012. The short of it is that they have to offer a scheme of 4% matched (3% from you 1% from tax refunds and 4% from the employer) but the employee can opt out if they wish. It depends on the size of the company however whether they have to do it from October or have a longer timescale.

http://www.employeebenefits.co.uk/cgi-bin/item.cgi?id=8415

EDIT : official DWP advice here: http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/toolkit/

McKneff

So even after October employers are not legally obliged to contribute if they wish not to do so.

LadyMissA

McKneff wrote: »

So even after October employers are not legally obliged to contribute if they wish not to do so.

No all companies will have to contribute


'
As part of the new company pension law employers will be required to make pension contributions at a minimum of 3% , a level which can be phased in according to company size between October 2012-17. By 2017 all employers should offer pension contributions at the equivalent of at least 3% of pensionable earnings.
If you are an employee seeking advice on your pension options contact a member of an independent pension advice team for a free initial consultation.
Between 2012-17 every employer will be required to start offering a company pension scheme and auto-enrol all eligible employees. Employees may choose to opt out, in which case the employer is not required to make any contributions on the behalf of that employee.
For companies employing 30,000 or more, all eligible employees must be auto-enrolled by October 2012, with small and medium-sized companies being allowed a longer time-frame to introduce changes brought about by the new law.'

Googlewhacker

to add to ladymissa, Employers will have to automatically enrol their employees EVERY year and the employee will need to opt out on a yearly basis.

Basically they are making it as hard as possible to not be in the scheme!

LadyMissA

Googlewhacker wrote: »

to add to ladymissa, Employers will have to automatically enrol their employees EVERY year and the employee will need to opt out on a yearly basis.

Basically they are making it as hard as possible to not be in the scheme!

I know some companies who wont want to pay contributions at all.

McKneff

But if they can opt out, doesnt it mean that they cant be forced to pay into it.

heretolearn_2

EmployEES can opt out. EmployERS can't.

Googlewhacker

McKneff wrote: »

But if they can opt out, doesnt it mean that they cant be forced to pay into it.

Employees yes!

What will happen is that employer won't give pay raises to counter the 3% they will have to pay and employees will have to put in the end 5% of their income into the pot.

I can see the reasons for it being done but the timing is aweful.

LadyMissA

McKneff wrote: »

But if they can opt out, doesnt it mean that they cant be forced to pay into it.

Employers can't workers can!