Workplace Pension Reviews
Is your pension scheme working for you and your employees?
If you already offer a workplace pension scheme, how long since it was reviewed? Is it providing good outcomes for your employees? Not sure?
This is where we come in, we can conduct workplace pension reviews which deal with the following:
- Value for money – What are the charges that apply to the pension scheme? Are these charges competitive, and do they represent good value for money? We can compare your scheme charges with those offered by competitors
- Investment performance – How is your pension provider’s default investment fund performing? How does this compare to competitors and the industry benchmark? We can identify an underperforming investment fund and recommend next steps
- Customer service – Are service levels and timescales being met? Do you and your employees find it easy to engage with the pension provider if you need anything? If not, we can liaise with the provider to find solutions, or we can explore alternative pension arrangements
- Employee engagement – Do employees have access to guidance, tools and resources that will help them to make the best decisions for the future? Can their pension plan be easily serviced online? Is a fully functional app available? Decisions regarding pensions can have far reaching implications, and all individuals should be able to access guidance and support to help them along the way
We provide workplace pension reviews and advice to small and larger employers across a wide range of industries sectors.
The employers and employees we support have the re-assurance that they can contact us at any time with queries.
Pension Presentations to Employees
We deliver insightful interactive pension presentations to employees, and each year. We provide employers with a bespoke easy-to-read report, outlining:
- Key scheme information i.e. scheme type, charges, contribution rates
- Investment performance with a competitor comparison
- Guidelines set by The Pensions Regulator that all employers need to follow
- Outstanding tasks and ongoing issues with the scheme (if any) e.g. missed/late pension contributions
- Employee movements in the last year
- Forthcoming legal changes that employers need to be aware of
Talk to us and get advice about
- Setting up a new workplace pension scheme
- Reviewing your existing workplace pension scheme
- Your legal duties as an employer
- Reducing your National Insurance bill with pension salary exchange/sacrifice
- Investing in environmental, ethical, and socially responsible funds
- Other cost-effective employee benefits that can be provided to employees
We also have a team dedicated to offering advice on personal pensions.
FAQ’s
Can employers opt out of a workplace pension scheme?
All employers must provide a workplace pension scheme if they have eligible employees. This is known as automatic enrolment, and it is not possible for an employer to opt-out of this duty. It is however possible for employees who have been automatically enrolled into a workplace pension scheme to opt-out if they wish to.
What makes you eligible for a workplace pension?
For an employee to be deemed eligible for a workplace pension, they must:
- Be aged between 22 and their State Pension age
- Earn at least £10,000 per year before tax (or £833 per month, or £192 per week)
- Normally work in the UK
How much do employers contribute to a workplace pension?
The minimum employer pension contribution depends on the contribution basis that is selected when the pension scheme is established, this can vary between 3% to 4% of pensionable pay. A scheme’s contribution basis determines what is classed as pensionable pay, and the four options are outlined below:
Pensionable pay | Minimum employer contribution | Minimum total contribution | |
Option 1 | Qualifying earnings between £6,240 & £50,270* | 3% | 8% |
Option 2 | Basic pay | 4% | 9% |
Option 3 | At least 85% of total pay | 3% | 8% |
Option 4 | Total pay (includes salary, bonuses, overtime, commission and other earnings) | 3% | 7% |
For example, an employer chooses option 2 – basic pay, they will be legally required to contribute at least 4% of their employee’s basic salary into their pension each year. The total minimum contribution under option 2 – basic pay is 9%, so the remaining 5% can be funded by the employee, or the employer can contribute more than 4% if they wish to.
*Qualifying earnings means that pension contributions are not based on an employee’s entire salary, they are instead based on earnings between £6,240 and £50,270. For example, an employee earning £30,000 will have qualifying earnings of £23,760 (£30,000 - £6,240). So, a 3% employer contribution will be 3% of £23,760, as opposed to 3% of the employee’s full salary.
Can an employer refuse to enrol an employee during probation?
An employer may postpone auto-enrolment until employees have passed probation, but if an employee requests to join the scheme during probation, the employer must enrol them.
A pension is a long-term investment accessible from the age of 55 (increasing to 57 in April 2028). The value of an investment and the income from it can go down as well as up, and you might not get back the original amount invested.