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 Pension Scheme
Topic Originator: AlterPar  
Date:   Thu 18 Mar 18:46

Wonder if anyone on here can help here. Business with 4 employees, had a letter through to see must sign up for a Pension scheme.

Am I right in saying that if all employees within the company provide written confirmation that they do not wish to join a pension scheme, can the business opt out of signing up to one?

Cheers
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 Re: Pension Scheme
Topic Originator: Jbob  
Date:   Thu 18 Mar 19:06

Surely a query for a solicitor

Bobs of the world unite
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 Re: Pension Scheme
Topic Originator: sadindiefreak  
Date:   Thu 18 Mar 19:09

Pretty sure you have to have one in place so an employee can choose to opt in at any time.

https://www.gov.uk/employers-workplace-pensions-rules
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 Re: Pension Scheme
Topic Originator: DA-go Par Adonis  
Date:   Thu 18 Mar 20:26

There's got to be a workplace scheme on offer and the employer must pay 3% into it - as long as the employee is paying 5%.

An employee can opt out but I'm pretty sure they've got to opt out on an annual basis.

The employer can't encourage the employees to opt out.

There's other rules for the low paid workers (was £10k pa but that might have increased) but that's about the size of it.



Post Edited (Thu 18 Mar 21:30)
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 Re: Pension Scheme
Topic Originator: Malcolm Canmore  
Date:   Thu 18 Mar 21:36

Quote:

AlterPar, Thu 18 Mar 18:46

Wonder if anyone on here can help here. Business with 4 employees, had a letter through to see must sign up for a Pension scheme.

Am I right in saying that if all employees within the company provide written confirmation that they do not wish to join a pension scheme, can the business opt out of signing up to one?

Cheers


You have to enrol all eligible employees in the scheme. Thereafter, an employee can opt out, but cannot be forced or encouraged by the employer to do so. Employees opting out are automatically re-enrolled every three years and have to opt out again.

My dog eats meat
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 Re: Pension Scheme
Topic Originator: Berry  
Date:   Fri 19 Mar 16:19

I had a question on pension schemes actually (if AlterPars question has been covered already) and it’s about transferring one into the other, is that something that is recommended?

I’m thinking there might be a hefty charge at one end of the process for doing it but balancing it against being more comfortable having it all in the one place than scattered about different companies.
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 Re: Pension Scheme
Topic Originator: CAPar  
Date:   Fri 19 Mar 16:31

Berry, it'll depend on the type of policy and the terms it was taken out on. Best bet is to call the provider and ask if there's a penalty. Often there isn't these days.

One thing to take into account is whether the receiving provider will accept business without an IFA being involved. Again, will depend from provider to provider but if they insist on one, the IFA will charge you.
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 Re: Pension Scheme
Topic Originator: AlterPar  
Date:   Fri 19 Mar 17:50

Thanks everyone, helped to clear this up for me as was receiving mixed messages!
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 Re: Pension Scheme
Topic Originator: DA-go Par Adonis  
Date:   Fri 19 Mar 19:12

Quote:

Berry, Fri 19 Mar 16:19

I had a question on pension schemes actually (if AlterPars question has been covered already) and it’s about transferring one into the other, is that something that is recommended?

I’m thinking there might be a hefty charge at one end of the process for doing it but balancing it against being more comfortable having it all in the one place than scattered about different companies.


Case by case basis Berry. Sometimes there's a good reason to consolidate, sometimes it makes sense to leave alone. Depends on a number of factors - such as exit penalties, fund choice, your age, any guarantees, options the scheme will permit at retirement etc.

----------------------------------------------------------------------------------------------
I love it when we go sell Kevin Nisbet,
He's gonna pay for everyone this season.
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