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Increased pension contribution during furlough

We have a salary sacrifice pension scheme.

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Under CJRS we understand that the 'starting point' for pay is after the deduction of pensions paid under salary sacrifice.

An employee, on furlough, wishes to increase his pension contribution.

Should the amount claimed under CJRS reduce - or do we continue to use the February figure?

I feel it should be unchanged..for consistency with not allowing changes if pay is increased.


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By Mr_awol
24th Jun 2020 11:40

Personally I would tell him that he is furloughed but that once he returns to full salary any sacrifice can be considered from that point onwards. The whole point of a salary sacrifice is that you give something up, for something else in return. It sounds like this guy wants the employer to fund additional pension with no cost to himself.

If the employer is happy with that, then fine but it isn't salary sacrifice, it's a bonus paid into the employees pension pot surely.

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By Wanderer
24th Jun 2020 11:49

If you are paying 80% then you could easily underpay the employee resulting in your CJRS claim being invalid.
I would recommend that you follow Mr awol's advice above.

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By tom123
24th Jun 2020 12:07

I can see where this is going. In effect during furlough I would either be claiming more than I am paying out as wages, or funding the difference.

Thanks for helping my train of thought.

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