Employer's Pension Contributions
Employers may pay contributions towards an occupational, stakeholder or personal pension scheme. An employer's pension contributions may vary.
Are employers legally required to make pension contributions?
Currently, employers with five or more employees earning above the National Insurance lower earning limit must offer the opportunity for employees to enrol in a pension scheme, but they are not currently obliged to make any contributions towards that pension fund, should the employee choose to opt in.
The law on employer's pension contributions is set to change though. From 2012 changes will be phased in meaning that by 2017 all employers will be required to auto-enrol employees in some form of pension scheme and offer a minimum contribution equivalent to 3% of the employees pensionable earnings, unless theychoose to opt-out.
If you company is seeking advice on setting up a pension scheme contact an independent company pensions advisor for further information.
What is the minimum amount that an employer must contribute towards a pension?
Your employer is not yet obliged to contribute a minimum amount towards your pension fund. However, by 2017 all employers should offer a minimum contribution of 3% of your pensionable earnings.
What is the maximum amount that an employer can contribute towards a pension fund?
There is no upper limit to the amount that an employer can contribute towards a pension fund.
For impartial advice on finding the best pension options for your needs contact an independent pension advisor for a free initial consultation.
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