Employer Contribution and Your Contribution

Sumselkb

Hello,

I logged into my workplace pension account and noticed something. I don't know whether it matters or not so thought I would check.

On my Transactions page it always says three things for each month:

- Management Charge

- Your Employer's regular contribution

- Your regular contribution

However, for this last month, it only says:

- Management Charge

- Your Employer's regular contribution

There is no 'Your regular contribution'.

However, looking at the amount, it does look like the 'Your Employer's regular contribution' and the 'Your regular contribution' have been combined into the one 'Your Employer's regular contribution'.

Does this matter? Will it affect anything in the future regarding my workplace pension or future state pension? I don't think that it would but just thought that I would double check.

Thanks.

ffacoffipawb

If you use salary sacrifice, all contributions are employer contributions.

The only impact is that you save some NI contributions, as does your employer who may add some of their NI savings to your pot.

Albermarle

Yes it sounds like you have been moved over to a salary sacrifice arrangement for making contributions.
It is actually to your advantage,  but the employer should have fully informed you about the change in advance ?

Sumselkb

I don't think I am on a salary sacrifice arrangement. I only work part-time and my salary is £7,200 a year.

squirrelpie

ffacoffipawb said:

If you use salary sacrifice, all contributions are employer contributions.
The only impact is that you save some NI contributions, as does your employer who may add some of their NI savings to your pot.

But even if that is what has happened and even without an extra contribution from the employer the amounts should have changed? Because what was the employee's net payement is now the employer's groos payment?

Albermarle

squirrelpie said:

ffacoffipawb said:

If you use salary sacrifice, all contributions are employer contributions.
The only impact is that you save some NI contributions, as does your employer who may add some of their NI savings to your pot.

But even if that is what has happened and even without an extra contribution from the employer the amounts should have changed? Because what was the employee's net payement is now the employer's groos payment?

Not necessarily . If it has changed it could previously have been a net pay arrangement, or in this case it seems the OP is not paying tax anyway .

To the OP - something has clearly changed anyway - ask your payroll/HR dept 

ffacoffipawb

Albermarle said:

squirrelpie said:

ffacoffipawb said:

If you use salary sacrifice, all contributions are employer contributions.
The only impact is that you save some NI contributions, as does your employer who may add some of their NI savings to your pot.

But even if that is what has happened and even without an extra contribution from the employer the amounts should have changed? Because what was the employee's net payement is now the employer's groos payment?

Not necessarily . If it has changed it could previously have been a net pay arrangement, or in this case it seems the OP is not paying tax anyway .

To the OP - something has clearly changed anyway - ask your payroll/HR dept 

The OP earns less than £8,000 per year and therefore pays no tax (assuming no other taxable income).

Salary sacrifice, if that is what has happened, is bad for a non taxpayer as they are missing out on the 25% uplift provided by basic rate tax relief.