Pension contributions after being in furlough

Green777

Morning all. 
I was put on furlough at the beginning of lockdown, with my employers pension contributions brought down to the minimum 3%.

I have since been back at work and off furlough now for a month and a half, receiving full, normal pay. Yet my employer is still only paying me the minimum pension contributions of 3%.  When I query HR they tell me its staying the same 'as these are uncertain times'.

Half of the company is still on furlough, half isn't. But I'm sure lowering pension contributions was only mandatory when you were actually furloughed, returning to normal when you returned?

Can anyone help with any facts on the matter? Or any links to returning to work legislation that I can fire back at them? As I'm sure they are in the wrong.

Thanks. 

Jeremy535897

Green777 said:

Morning all. 
I was put on furlough at the beginning of lockdown, with my employers pension contributions brought down to the minimum 3%.

I have since been back at work and off furlough now for a month and a half, receiving full, normal pay. Yet my employer is still only paying me the minimum pension contributions of 3%.  When I query HR they tell me its staying the same 'as these are uncertain times'.

Half of the company is still on furlough, half isn't. But I'm sure lowering pension contributions was only mandatory when you were actually furloughed, returning to normal when you returned?

Can anyone help with any facts on the matter? Or any links to returning to work legislation that I can fire back at them? As I'm sure they are in the wrong.

Thanks. 

You are mixing up what an employer can claim under the CJRS and what your contract of employment, as amended by any furlough agreement, says. Your employer could only claim minimum pension contributions under the CJRS while you were on furlough, so the furlough agreement normally amended your contract of employment to say that the employer would only pay the minimum.

If the amendment to your contract only lasts while you are on furlough, your employer should make whatever pension contributions they are supposed to make, which will be the pre-furlough rate, once your furlough ends. If however your contract of employment was amended to reduce their pension contributions until further notice, whether you are furloughed or not, then they will continue to contribute the minimum.

[Deleted User]

Jeremy535897 said:

If the amendment to your contract only lasts while you are on furlough, your employer should make whatever pension contributions they are supposed to make, which will be the pre-furlough rate, once your furlough ends. If however your contract of employment was amended to reduce their pension contributions until further notice, whether you are furloughed or not, then they will continue to contribute the minimum.

I know of a few companies where friends are employed that made a whole host of permanent or long lasting changes to employment conditions that extend well beyond the end of their furlough. Increased pension contributions seemed to be one of these, as did many bonuses. Quite a few companies seem to have used them to make fairly wide reaching roll backs of employee benefits. 

Green777

Hi thanks for that, the amendment to my contract was as follows:

We agree that from the 30 March 2020 you shall be on Furlough Leave. This means your contract of 

employment continues, but you shall not be required to come into work. We will pay you 80% (subject 

to a maximum liability for us of £2,500 per month, including employer’s national insurance 

contributions and employer’s pension contributions) of your salary during that time, subject to us being 

reimbursed by the government under the scheme. 

Your Furlough Leave shall end on the earliest of the following events: 

(a) the government’s Coronavirus Job Retention Scheme ending; 

(b) either you or us not being or ceasing to be eligible for funding under that scheme; or, 

(c) us deciding to cancel Furlough Leave and bring you back to work

My return to work letter said I would be reverting back to pre furlough pay. 

So my employer is confusing the terms of CJRS? As my contract hasn't been amended in any way concerning pension contributions.

(sorry if the above didn't paste well, im my phone)

Thanks 

Jeremy535897

That seems very clear to me. Your furlough has ended, and the reduction in salary and pension contributions only lasted for the duration of your furlough. Ask why your pension contributions have not returned to normal.

[Deleted User]

Jeremy535897 said:

Ask why your pension contributions have not returned to normal.

My guess would be because reducing them cuts costs and they probably think that they can get away with it? Although I suspect that is not the answer that will be given.

Jeremy535897

Maybe they might say "you got me bang to rights Guv"? Or maybe not.