In a Group Personal Pension Plan (That doubles as the Auto Enrolment Option) within a Company, the policy document from the inception of the membership into the scheme in 2015 states the following:
Contribution Details
Regular Contributions
Your Empoyers Regular contribution £66.44 a month
Due Date of Each Contribution - 1st of the Month
Over the next few years, the amounts paid into your penson plan may need to be increased to meet the government minimum contribution levels. We have not included any increase in contribution rates in this plan schedule.
Explantion provided in a side column (These are the contribution you expect to be paid into your plan. They may change in future.)
I guess my question is - does that £66.44 include the employees part of auto enrolment (initially 1% at the time this started) that is deducted from salary each month or is that in addition to this £66.44? Since the Employers £66.44 is already above the minimum 1%, I assume they would not pay in any additional 1% on top of that arrangement as well? Emails fromt he employer for auto enrolment back in 2015 (just before this document was dated) stated it was 1% employer, 1% employee, so again, that doesnt make sense to me. The issue is, until the minimum amount of employees contributions went up to 3%, all I can see on the pension statement is £66.44 and nothing else - no split between employer/employee. After the 3%, I can see a total on the pension statement that roughly adds up to what is deducted from his salary and an additional 2% employers - actually less than the £66.44 if you take away the 3% contribution of the employee) This is the same when it went up to 5% (total - employee contribution = approx 3%, but less that then £66.44 again) In the Key Facts, it states The Total your employer will pay : £66.44 per month. the contribution expressed as a percentage of your pensionable earnings are 2.57% per year contributed by your employer. We have assumed that all non earnings based contributions will remain level. I really just dont understand it. I have emailed various people (The Employer, The Scheme and the employer third party FA, but I am still awaiting responses....)
Any thoughts are gratefully recieved.....
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Replies (4)
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I'd wait for a response from the people you've already contacted. They should be in possession of the full facts, few of which provided here.
Are you considering that the employer contributions might be based on band earnings or something more than band earnings when trying to make sense of the employer contribution?
It is based on 2.57% of £31,000 as per key statement document. However, his information on auto enrolment (via company emails) states 1% employee, 1% employer with 80% bu employee, 1% employer and 20% Relief). So, calculating banded or unbanded on the 1%'s at the time, is still less than £66.44. I dont understand if the £66.44 is solely from Employer, if that over rides their 1% and if the employees 1% is somehow wrapped up in that amount.
Silly question, possibly, but do payslips give both employer and employee contributions? The reason I ask is mine, using Brightpay, each month shows YTD Employer pension contribution plus year to date employee contribution so if one holds the March one then one knows what each was for the year.
