Hi all,
After noticing the pension contributions on my payslip (PAYE, weekly) to be ridiculously small I started to investigate how the contribution figure for myself and for Giant was arrived at. Giant took about 3 weeks to give me an obscure answer, but one that was sufficient enough for me to work out what was going on, along with a lot of online research.
It appears the reason the contribution for both my part and their part is so small is because they don't take my full pay into account, rather have some sort of arbitrary "basic pay" level set, which is just over half of my actual pay. The contributions are then a percentage of that minus NI contributions. I've tried to find information on whether that practice is legal, and how far they can push it, but I'm not sure of what it is I'm searching for.
Reading up on the Nest pension, the government want to ramp up contributions for both employee and employer over the next couple of years. However, if the employer can set an arbitrary pay rate at which to make the contributions on, it makes a mockery of the government's intentions.
Can anyone shed any light on this practice or have any related information?
I also asked Giant how I could increase my contribution, they said I couldn't unless I cancelled the Nest pension and started with someone else. Is that true, or are they misleading for their own benefit?
Many thanks for any intelligence you can offer on this subject.
C
After noticing the pension contributions on my payslip (PAYE, weekly) to be ridiculously small I started to investigate how the contribution figure for myself and for Giant was arrived at. Giant took about 3 weeks to give me an obscure answer, but one that was sufficient enough for me to work out what was going on, along with a lot of online research.
It appears the reason the contribution for both my part and their part is so small is because they don't take my full pay into account, rather have some sort of arbitrary "basic pay" level set, which is just over half of my actual pay. The contributions are then a percentage of that minus NI contributions. I've tried to find information on whether that practice is legal, and how far they can push it, but I'm not sure of what it is I'm searching for.
Reading up on the Nest pension, the government want to ramp up contributions for both employee and employer over the next couple of years. However, if the employer can set an arbitrary pay rate at which to make the contributions on, it makes a mockery of the government's intentions.
Can anyone shed any light on this practice or have any related information?
I also asked Giant how I could increase my contribution, they said I couldn't unless I cancelled the Nest pension and started with someone else. Is that true, or are they misleading for their own benefit?
Many thanks for any intelligence you can offer on this subject.
C
Comment