Salary Sacrifice for part time worker

Marcon

Penguin_ said:

Marcon said:

Cressida100 said:

I think you have to work for the company for 6 months beforehand. Perhaps ask again in 6 months?

No waiting period necessary unless the particular employer imposes one (hard to see why they would - it would make their own life much more complicated when running payroll).

Not really hard to see why they would want a waiting period. If the salary sacrifice is for a car/bike etc then you want to make sure the employee is going to stick around.

Never seen any employer impose a waiting period - certainly not for pension contributions. 

FIREmenow

Our pension salary sacrifice starts after three months. I think this is to give auto enrolled staff a chance to opt out again and have their own contributions returned before they start being paid by the employer.

Marcon

FIREmenow said:

Our pension salary sacrifice starts after three months. I think this is to give auto enrolled staff a chance to opt out again and have their own contributions returned before they start being paid by the employer.

That's interesting - but the employer isn't right if that is the rationale. An employee must opt out within a month if they are to get a refund of their own contributions (leave it any longer and they can still opt out, but are treated as leaving 'active membership' so all contributions stay in the pension scheme), so waiting 3 months doesn't make sense.

Even if contributions are paid by salary sacrifice, there is nothing to stop the employer 'refunding' them by an appropriate adjustment to pay if someone does opt out within a month.

FIREmenow

Marcon said:

FIREmenow said:

Our pension salary sacrifice starts after three months. I think this is to give auto enrolled staff a chance to opt out again and have their own contributions returned before they start being paid by the employer.

That's interesting - but the employer isn't right if that is the rationale. An employee must opt out within a month if they are to get a refund of their own contributions (leave it any longer and they can still opt out, but are treated as leaving 'active membership' so all contributions stay in the pension scheme), so waiting 3 months doesn't make sense.

Even if contributions are paid by salary sacrifice, there is nothing to stop the employer 'refunding' them by an appropriate adjustment to pay if someone does opt out within a month.

It's DB if that makes any difference?

penners324

Perhaps you've been set up incorrectly on the payroll system. Ie with the standard 5 day week and not part time.

If payroll won't budge, perhaps go to the department manager or there manager.