Company moved goal posts ?

Marcon

Time4T_Accounts said:

Take a look at paragraphs 36 onwards of this doc from The Pensions Regulator …

https://www.thepensionsregulator.gov.uk/en/document-library/automatic-enrolment-detailed-guidance/4-pension-schemes-under-the-employer-duties#5ef327504793462b895a8c372b3157f9

Start a bit earlier:

32. The minimum requirements for DC pension schemes, and DB schemes that satisfy certain conditions, set a minimum contributions entitlement. There are some additional requirements where the DC pension scheme is a contract-based scheme (ie a personal pension). For employers who provide a DC pension scheme, there is an alternative way of meeting the requirements called ‘certification’.

Then read from 54. to learn about 'certification'.


Also note [my square bracketed comment]:

38. ‘Qualifying earnings’ is a reference to earnings of between £6,240 and £50,2705 made up of any [which does not necessarily mean 'all'] of the following components of pay (‘earnings’) that are due to be paid to the worker: 

• salary 
• wages 
• commission 
• bonuses 
• overtime 
• statutory sick pay 
• statutory maternity pay 
• ordinary or additional statutory paternity pay 
• statutory adoption pay. 

39. The assessment of whether a component of pay constitutes an element of qualifying earnings is for the employer to make. It is a separate and distinct assessment to deciding what constitutes basic pay for the purposes of a pension scheme that is using certification to meet minimum requirements as part of the qualifying criteria.

Time4T_Accounts

Thank you for this. What a minefield!

BlackKnightMonty

I’m just starting the process of moving my NEST pot - built up through prior employment - over to my new employer’s Aviva Pension.

This will give me more control over how the money is invested (23 fund options vs 6).

Marcon

Time4T_Accounts said:

Thank you for this. What a minefield!

I couldn't agree more - and I admire you greatly for sticking with it until you were happy (I use the word advisedly) you understood where the mines are!

Time4T_Accounts

What bothers me most is that I’ve dealt with this as Treasurer of a charity. There’s no money for professional advice (like many charities, it’s hand to mouth, with little money to meet core costs), and knowledge is not perfect- granted, if it were to be perfect, then the decisions might not be different, but it is still a minefield.

Time4T_Accounts

Going back to the title of the thread, then it does appear that the employer has moved the goalposts, in which case it would be a matter of their employment contract.  If they’re in a Union, then they could take it up with them, or it might need a chat with a lawyer.

Marcon

Time4T_Accounts said:

What bothers me most is that I’ve dealt with this as Treasurer of a charity. There’s no money for professional advice (like many charities, it’s hand to mouth, with little money to meet core costs), and knowledge is not perfect- granted, if it were to be perfect, then the decisions might not be different, but it is still a minefield.

Completely agree. If this is a contributory scheme, are employees paying by a properly established salary sacrifice arrangement, which could at least save the charity some NI?

Time4T_Accounts

Yes, they are, and we claim the Employment Allowance as well, which is a massive help!