Work / Private Pension

pollyanna24

I recently spoke to my boss about him providing a pension for me and he asked his payroll company and they said that he won't be "forced" into the government campaign until sometime in 2017.


He said his payroll said it would involve too much paperwork to do it before he actually had to, but my boss said he was willing to contribute towards a pension if I found one myself.


So I was wondering if this was a normal situation. I can go to any of the companies out there offering private pensions, but how would my boss contribute to that? And how much would he have to contribute (I'm guessing the answer is however much he wants), but just wondered what the norm was.

dunstonh

So I was wondering if this was a normal situation.

It is very common with small companies.

I can go to any of the companies out there offering private pensions, but how would my boss contribute to that?

Virtually all personal pensions will accept employer contributions. The applications are geared for it.

And how much would he have to contribute (I'm guessing the answer is however much he wants), but just wondered what the norm was.

Until forced to do so, whatever he wants is the correct answer.

xylophone

his payroll said it would involve too much paperwork to do it before he actually had to,

There will be less when he has to?

Is the idea that your employer will make a contribution into a personal pension plan that you set up?

You and he might be well advised to take professional advice on this regarding the tax situation?

http://en.wikipedia.org/wiki/Personal_pension_scheme

"An employer can contribute an amount of up to the annual allowance each year, provided that they can demonstrate to the local inspector of taxes that this contribution has been made wholly and exclusively for the purposes of the business. This definition is open to wide interpretation and HMRC have yet to provide any more concrete guidelines."

http://www.hl.co.uk/pensions/sipp/how-much-can-i-invest/employer-contributions There might be something of interest here?

pollyanna24

Thanks for the replies.


When I've looked up pensions on the internet, it asks how much I am able to put into it, but there's no mention of my boss topping it up anywhere.


How would he do it? Would he have to get involved with the company to show he is giving me money?


Would he just give me the money direct so that I have more that I can put into it?


Or does something have to be done via my wageslip because of tax? His payroll company seem to be avoiding this.

atush

It is best if it comes from payroll, because you save Nics (as does he). But, if he and payroll dont want to be bothered, you set up the PP with the amt You want to put in. Ask the pension co for any form for your company should they want to pay direct.

Show him the paperwork, then ask if he wants to have payroll pay them direct or if he just wants to give you extra (which is the situation my OH is in) and then you set up to pay their amt in with yours (ie if you are paying in 200m and they want to add 200 by giving you 200 extra each month then you change your DD from 200 to 400).

xylophone

Why not see an IFA with expertise in pensions?
http://www.unbiased.co.uk/financial-adviser