Salary sacrifice on furlough

Psyduck1980

Jeremy535897 said:

See https://www.ftadviser.com/pensions/2020/04/20/tpr-clarifies-treatment-of-salary-sacrifice-under-furlough/

TPR guidance here:
https://www.thepensionsregulator.gov.uk/en/covid-19-coronavirus-what-you-need-to-consider/automatic-enrolment-and-pension-contributions-covid-19-guidance-for-employers/covid-19-technical-guidance-for-large-employers

Thank you very much. 👍

calcotti

Psyduck1980 said:

calcotti said:

Psyduck1980 said: I read this as meaning I should be paid £2,500 less tax and NI only and that my employer should pay over my £325 pension contributions (plus their employer contributions). Do you agree?

No I don't. Your pension contributions are your contributions not your employers. They should be made at the same % rate as before. Your employer will also make the employer contribution. The employer will be reimbursed for the government for their contribution (unless they are topping the contributions up over and above the minimum requirement - they will not be reimbursed for the excess).

I’m not sure how you can reach that conclusion based on the information I quoted. Please can you clarify? 

My apologies - I failed to take in that you had said the contributions were being done through salary sacrifice
(Looks as if it's very complicated for the employer!)

Hsinny

Hello, wondering if anyone can help...

Last year I chose to sign up to trade 5 days holiday as a salary sacrifice. 

My contract for the holiday trading scheme was that I take a salary sacrifice throughout the 12 months from May 2019 to April 2020. This of course ended in April and I have fully paid back for the 5 days. I was then put on furlough on 27th April and despite having fully paid off my 5 days holiday, my furlough pay is 80% of my gross pay minus the holiday pay and pension contribution, yet I am not accruing this holiday. This will be the case for all the months that I am on furlough. Furlough was not my choice, and it's my understanding that I would stop paying a salary sacrifice for my holiday in April as part of the benefit contract. Should the company continue to deduct this from my gross salary? Thanks in advance!

gary83

Hsinny said:

Furlough was not my choice.

 You had to agree to be furloughed, did your employer not get your agreement to be furloughed?

sharpe106

What did you agree to when you stopped working?

unholyangel

Psyduck1980 said:

sharpe106 said:

Why would your employer pay your contribution?

Because that’s what salary sacrifice means. 

They might be (or might not be) subtley hinting that when you sacrifice salary in exchange for your employer making a larger pension contribution, it is not your contribution to your pension. It is their contribution to you pension.