Pension questions about what I've been offered

danm786

Hi all, I asked my employer for my pension options since i read they cannot refuse me a pension since seemingly they don't have to automatically enroll me yet until 2014 (300+ employees).

They set me up a meeting with a guy from a financial advisory firm for a plan managed by aviva.

What they're offering me is a personal pension where they contribute 3% of my salary. What are the minimum standards for a pension they have to offer me, is this ok?

I've read about salary exchange and it seems to make sense, however i am on minimum hourly wage, does this mean i am unable to do any salary sacrifice?

If I don't choose salary exchange (sacrifice) first, am i able to opt in later?

Does choosing this personal pension now affect my right for automatic enrollment workplace pension later?

Also, the pension managers aviva are charging 0.8% of the pension pot per year as a service charge, is this competitive?

Thanks for any help you guys give me.

dunstonh

Hi all, I asked my employer for my pension options since i read they cannot refuse me a pension since seemingly they don't have to automatically enroll me yet until 2014 (300+ employees).

They can refuse you a pension until they are required to offer it under auto enrolment.

What are the minimum standards for a pension they have to offer me, is this ok?

The minimum standard is zero.

I've read about salary exchange and it seems to make sense, however i am on minimum hourly wage, does this mean i am unable to do any salary sacrifice?

As long as you are paying NI then it is worth it.

If I don't choose salary exchange (sacrifice) first, am i able to opt in later?

Up to the employer.

Does choosing this personal pension now affect my right for automatic enrollment workplace pension later?

No. However, your employer may insist on you switching to the scheme they give everyone else.

Also, the pension managers aviva are charging 0.8% of the pension pot per year as a service charge, is this competitive?

1% for a basic scheme is the benchmark. A small individual scheme is not going to get the low charges of one with say 300 members in it.

I wouldnt create too many issues if I was you. If the employer was to find out they dont have to offer you a pension until their auto enrolment date, they may withdraw their generous offer.