Salary sacrifice pension

jamesd

Your husband can't do it directly but the firm is required by law to continue pay some types of contributions:

"A woman on paid maternity leave will continue to pay contributions. The rate will apply to the amount of pay actually received.

If the employer normally contributes to the plan, they will still be required to continue contributing during paid maternity leave. These contributions will be based on the pay the employee would have received had she not gone on maternity leave. In schemes where the rules state that the employer will match the employee's contribution, the employer must still contribute at the level the employee would normally pay and not what she is actually paying during her maternity leave.

Any death benefits payable under the scheme must be based on the same benefits as would have been paid had the employee been working normally.

During a period of unpaid maternity leave, neither the employee nor the employer will be expected to contribute. The employee may, if she chooses, pay contributions during this period but the employer will not have a duty to contribute (unless their contract of employment states otherwise)."

And:

"For a member of staff who is on ordinary maternity leave, their employer is required to continue to contribute pension contributions based on their full salary and not the actual pay that the member of staff is receiving.

Where the member of staff takes additional maternity leave, then for the first 13 weeks the employer should continue to pay the full level of contributions.

For the remaining 13 weeks, if the employer pays the member of staff a salary then they are also required to contribute to the scheme, if it is unpaid leave then there is no requirement to contribute."

rpc

mysk_girl wrote: »

Isn't your wife's employer continuing to make contributions? AFAIK they are obliged to, mine are continuing through SMP and I can assure you they wouldn't if it company had any say in the matter!

They continue to pay into her GPPP as they are required to, but her stakeholder is completely independent and the only contributions are personal ones.