Employers matched contributions

in Auto-enrolment
3 replies 5.1K views
Due to redundancy circumstances I have had to change my jobs recently. My previous employer who I had been with for 15 yrs had a good matched contribution pension so it made sense to pay into it. However my new employer , despite being a large UK based bank, does not offer any matched employer contributions at all. I found this to be very odd. Obviously I took this job as I needed to get into employment after the redundancy. I read something on this site suggesting ALL employers will have to pay matched contributions by 2018. I'm not very clued up on pensions at all. Just wondering if anyone can give me any advice?
I've always been of the way of thinking that when it comes to pensions I haven't paid as much as I could have as I've never trusted the pension company/government not to screw me over down the line.

Replies

  • greenglidegreenglide Forumite
    3.3K Posts
    Part of the Furniture Combo Breaker Hung up my suit!
    ✭✭✭✭
    If it is truly a "large UK based bank" then presumably it has been operating in the UK for some time? Under these circumstances it must surely have passed it's staging date ages ago so it must have, at the very least, have an auto-enrollment scheme.

    They ought to be paying at least 1% to members of that scheme.

    Is it not that there is a scheme but you don't qualify to join it - hours too short, have to serve a waiting time etc?
  • hyubhhyubh Forumite
    3.1K Posts
    Ninth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Chickabee wrote: »
    My previous employer who I had been with for 15 yrs had a good matched contribution pension so it made sense to pay into it. However my new employer , despite being a large UK based bank, does not offer any matched employer contributions at all. I found this to be very odd.

    Unfortunately the legal minimum employer contribution is just a fixed percentage of earnings within a certain range - 1% currently, going up to 2% next year and 3% the year after - rather than any sort of matching requirement. While of course many employers go above the legal minimum, that still doesn't imply matching employee contributions specifically.
  • ChickabeeChickabee Forumite
    201 Posts
    Its a defined contribution scheme. Basically when you start your advertised salary includes a 15% added value that they class as pension funding. You can take this as cash or select to allocate some or all of it to your pension or other staff offers. Most people just take it as cash to supplement their income. However if you elect to make a pension contribution with it then you don't then seem to get any matched pension contribution. Seems a strange set up
This discussion has been closed.
Latest MSE News and Guides

Bacon flavoured toothpaste

Can you help this Forumite track some down?

Join the Forum discussion

£10 Christmas bonus

For benefits recipients

MSE News