Simple way of calculating workplace pension contributions?

JustAnotherSaver

I thought it'd be a simple case of saying I pay in X so therefore website, tell me that my employer must have to pay in Y.

After clicking through various websites it appears not as straight forward as that for some reason. They're wanting to know what my blood type is, what I had for breakfast, blah blah blah. Not sure why the websites can't just give the simple answer?

Asking me for my salary. Not everyone is an office worker (though seemingly you'd be forgiven for thinking they are!) & not everyone is paid a salary. My pay varies week to week never mind month to month. I could earn 27k in a year, I could earn 20k. It depends on various things.

The "why" am I asking - is I contacted the workplace pension provider as I wasn't 100% convinced that my employer was paying in to it. Turns out they are. So now I want to check that they're paying in what they should be paying in

The provider has given me a month by month breakdown of what's been paid in. So I have all of my contributions. I'd like to just throw that in to a calculator for it to spit out an answer saying your employer should be paying in [this much] and seeing if it matches what they have paid in.

Brie

it should be outlined in your T&Cs with your employer.  maybe in a document you were given when you joined the company, maybe on the company website.  certainly the pension provider should know as they are likely the administrators of the plan and would have copies of the scheme rules.

MallyGirl

It does depend though.
The mandatory requirement is that you plus your employer contribute 8% with the employer having a minimum of 3%. This applies to your qualifying earnings - for the 2022-23 tax year this is everything over £6,240 and up to £50,270.
Your employer might base the calculation on your pensionable salary (Typically, pensionable pay is basic salary, not including elements of your earnings such as commission, bonuses and overtime), your whole salary (if they are generous) 

JustAnotherSaver

Ok I'm not sure whether you're getting what I said originally or not

Or whether you did & I'm just not getting what you're saying. So here goes -

@Brie (absolutely love it by the way ): I have absolutely zero paperwork from my employer on workplace pensions other than something along the lines of we'd be joining one & could opt out if we wish kind of thing. Nothing real specific & I've been with the company way way waaaaaaaay before this roll out was even mentioned.

I also don't want to involve the company - for what should be obvious reasons.

Hey [company], can you tell me the ins and outs of the workplace pension because I don't trust you're doing what you should be doing.

Not going to go down too well is it.

@MallyGirl: I know it depends (to a degree). Until I tell you, you don't know whether I pay in 5%, 10%, 15%, what the employer pays in, whether I earn 20k, 200k or whatever.

But as I can't grasp it - in my mind it really doesn't matter. The provider has given me a breakdown of what has been paid in each month both by myself and my employer (as said in OP).

Surely a calculator should say well if you paid in £200 and that was your 5% and your employer is paying in 3% then they should've paid in [£xyz].

And not .... well "it depends". If they're paying in 3% it depends on what you earned, how many hours you worked, what you did on this date, that date etc. If my 5% = <something> then their 3% should = <something else>.

And to be clear - those are the numbers that are being paid in (I'm paying in 5%, they're paying in 3% - and no they wont pay in extra. They're not keen on paying in 3%, hence one of the reasons I'm even looking in to whether it's being paid at all).

So let's say I paid in £122.84. They should pay in....?

Dazed_and_C0nfused

So let's say I paid in £122.84. They should pay in....?

Are they using a net pay or relief at source scheme?

Relief at source means you only actually contributed £98.27 and £24.57 in tax relief was added.  Or you contributed £122.84 and £30.71 will be added.

Net pay means you contributed £122.84 and no tax relief is added but you paid less tax on your wages as a result.

MEM62

JustAnotherSaver said:

I also don't want to involve the company - for what should be obvious reasons.

Hey [company], can you tell me the ins and outs of the workplace pension because I don't trust you're doing what you should be doing.

No, not obvious at all.  Employers are not adversarial and must answer your questions honestly. 

Only your employer or the scheme administrators can answer your question.  There is no generic reply to your question - all schemes differ.  The scheme administrator would have provided you with documentation / a welcome pack when you joined the scheme.  If you cannot find that and cannot let go of your distrust of your employer then ask the pension Co for the information directly. 

xylophone

Does the provider not give you access to their website?

Example

https://www.nestpensions.org.uk/schemeweb/NestWeb/faces/public/MUA/pages/loginPage.xhtml

Does this help?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/workplace-pension-calculator

QrizB

JustAnotherSaver said:

The provider has given me a breakdown of what has been paid in each month both by myself and my employer (as said in OP).

So let's say I paid in £122.84. They should pay in....?

If the provider reports receiving £122.84 from you, the employer contribution is likely to be 3/5ths of that - so £73.70.

Is that what you see? And if it isn't, what *do* you see?

JustAnotherSaver

Dazed_and_C0nfused said:

So let's say I paid in £122.84. They should pay in....?

Are they using a net pay or relief at source scheme?

Relief at source means you only actually contributed £98.27 and £24.57 in tax relief was added.  Or you contributed £122.84 and £30.71 will be added.

Net pay means you contributed £122.84 and no tax relief is added but you paid less tax on your wages as a result.

It'll be before tax.

To try and avoid a "but does that mean..." question - when I get my payslip and it says deductions such as PAYE and National Insurance, it's listed underneath this before tax is taken off. It's taken from my gross earnings, not my net earnings.

MEM62 said:

JustAnotherSaver said:

I also don't want to involve the company - for what should be obvious reasons.

Hey [company], can you tell me the ins and outs of the workplace pension because I don't trust you're doing what you should be doing.

No, not obvious at all.  Employers are not adversarial and must answer your questions honestly. 

Only your employer or the scheme administrators can answer your question.  There is no generic reply to your question - all schemes differ.  The scheme administrator would have provided you with documentation / a welcome pack when you joined the scheme.  If you cannot find that and cannot let go of your distrust of your employer then ask the pension Co for the information directly. 

I can only say then that you live in a different (idealistic) world to me. You must've been blessed with superb employers all your life.

I wasn't born with this viewpoint, I formed this based on what I SEE and experience DIRECTLY day-to-day. This isn't formed based on he said she said, this is real first hand experience. I cannot let go of my distrust because they give me every reason not to.

The amount of people I've worked with who were coming to the end of their working lives who've worked in various setups up and down the land who've said to me "Never have I ever worked....." and finished that sentence negatively.

Who knows. Perhaps we ALL formed these opinions out of fresh air for no particular reason though.

"Employers are not adversarial". I'll admit I had to Google that but when I did I had to laugh. That's quite a blanket statement to make. A more accurate thing to say would've been "Most employers....".

Dazed_and_C0nfused

I agree with QrizB then, £73.70 seems the logical amount from what you've posted.

Brie

Well I'm happy to admit I've worked for some absolute barstewards over the years.  And had some great employers too, or at least ones that managed to give me a role or two that I've absolutely enjoyed doing.  

As for not asking anything direct.....simple question you could give is "I'm doing a financial review and the advisor has asked me for copies of the scheme booklet.  do you have a copy to hand?  paper or online is fine."  None of that would be a lie or is dreadfully controversial.