Employer Pension Contributions

McKneff

'pologies guys, got my ees and my ers mixed up lol.

LadyMissA

McKneff wrote: »

'pologies guys, got my ees and my ers mixed up lol.

workers can opt out as they may have their own pension already set up and they can't make them put into 2 as you can't have 2

Evilm

LadyMissA wrote: »

workers can opt out as they may have their own pension already set up and they can't make them put into 2 as you can't have 2

You can have as many concurrent pensions as you like as far as I know and have been advised. You will only get your employer matching into one however.

I've had my pension appointment with my company last week and my personal plan is better than their company plan. So I pay a monthly personal payment in the personal one AND a monthly payment from my salary which they match into the company one.

Since I'm working part time the money burden isn't too high even though I'm matching 5% (4% from me, 1% from tax and 5 from them).

Now I can only get tax relief on a certain amount of payments each year but since I think its like £50k its never going to be a problem! :rotfl:

Amanita_2

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!

Not quite - it is a 3 years before the employee needs to opt out again.

But yes it is one of the ways that are being used to reduce the numbers opting out.

Savvy_Sue

I am too tired to go link hunting, but all but the smallest employers must already offer a pension plan of some kind, although neither they nor the employee is obliged to sign up for it or pay into it.

We, for example, offer a Stakeholder scheme. If employees choose to join, employer pays 2% into it.

LadyMissA

Amanita wrote: »

Not quite - it is a 3 years before the employee needs to opt out again.

But yes it is one of the ways that are being used to reduce the numbers opting out.

Larger companies are starting Oct 2012 and they have to give you the option to opt out now or then not 3 years later.

LadyMissA

Savvy_Sue wrote: »

I am too tired to go link hunting, but all but the smallest employers must already offer a pension plan of some kind, although neither they nor the employee is obliged to sign up for it or pay into it.

We, for example, offer a Stakeholder scheme. If employees choose to join, employer pays 2% into it.

Really? Employers pay into the Stakeholder pension?

Amanita_2

LadyMissA wrote: »

Larger companies are starting Oct 2012 and they have to give you the option to opt out now or then not 3 years later.

Quite but once you are opted out then you do not have to opt out again for 3 years. I was just correcting the factual error that the opt out process has to be repeated annually which is why I quoted the post I was replying to.

There is actually quite a lot of misinformation in this thread - for example not everyone is required to be auto enrolled and the contribution is actually NOT on full salary but on qualifying earnings (which were initially set between £5,035 and £33,540 a year but are almost certain to be moved up a little when it comes fully into play).

Anyone earning below the bottom figure does not need to be auto enrolled although must be allowed to join if they ask.

For accurate up to date information the best source is from the horses mouth http://www.nestpensions.org.uk

Amanita_2

LadyMissA wrote: »

Really? Employers pay into the Stakeholder pension?

Yes of course they can. They just don't HAVE to by law.

Savvy_Sue

LadyMissA wrote: »

Really? Employers pay into the Stakeholder pension?

Yup, we pay into the stakeholder pension, but ONLY the one set up through our company (if that makes sense).

To clarify, if you come along and you already have a stakeholder (or any other kind of) pension, we don't pay into that. If you choose to set up a new stakeholder pension within the scheme which we have links to, we will.