minimum workplace pension contributions

nessierob

the details the scheme use are on basic pay only ,this below is another version of what i am saying

Workplace pension reform: Government response to consultation(ii) The draft Automatic Enrolment

28. Employers or schemes operating a pensionable pay or contributions cap can use certification provided that any jobholders affected by the cap do not receive contributions lower than the equivalent of 8 per cent of qualifying earnings of which at least 3 per cent must come from the employer. 

this is what the government mean by the upper limit provisos in the legislation in section 32e the DWP guidance on certifying money purchase schemes

so if you use basic pay only set 1 AQR scheme 9% of basic pay cant be less than 8% of qualifying earnings

The trouble no one is checking anything in the AQR schemes , the pension providers don't , they just rely on the employers the TPR don't check unless there is a complaint

i know this as the employer/pension professional set up set 1 at the same contribution level as qualifying earnings , 1% less employer contribution than what should be in set 1. It was never noticed for 6 years until i questioned it

Most employee just rely on what the employer says as the don't read or understand the rules and as they are government schemes so they should be correct