Contributions

As the employer, do I have to match the employee contribution?

No. An employer doesn’t have to match employee contributions. Currently, the minimum contribution is 8% of qualifying earnings, of which …

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Can an employee reduce their pension contributions?

Pension savings can be a very effective way to save for the future. Your employee may not be aware of …

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Can employees and/or employers pay more than the legal minimum contribution?

Both employers and employees can choose to contribute more than the legal minimum contributions. There is no minimum contribution level …

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Can you accept a one-off contribution for an employee once we’ve set up the scheme?

We do accept one-off pension contributions for an employee – you might see these called additional contributions. Additional contributions can …

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How does salary sacrifice work for pension contributions?

Salary sacrifice for pension contributions is a way for an employee to give up some of their salary and have …

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If an employee doesn’t wish to contribute to this pension, does the employer still have to contribute?

Where an employee is auto-enrolled but the employee doesn’t want to contribute, the employee can opt out of the scheme. …

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If we’re making an employee redundant do we have to take pension contributions from their redundancy pay?

The tax-free redundancy payment (up to £30,000), ie the lump sum the employee is getting for being made redundant, isn’t …

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My employee receives both a basic salary and a discretionary bonus. Is the basic salary used when calculating both employer and employee contributions. Would contributions be based on the bonus?

This depends on the definition of pensionable salary you’re using to calculate the contributions, and whether this includes bonuses. However, …

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We pay more than the statutory minimum contributions, can we reduce this?

If you use a defined contribution (DC) pension scheme and your employer contribution under your scheme is more than the …

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What are pensionable earnings?

The earnings used to calculate a member’s pension contributions are known as their ‘pensionable earnings’. They may include: basic salary …

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