Communicating workplace pension contribution increases effective 6 April 2018
Posted: 12th February 2018
Contributions to workplace pensions will increase automatically from 6 April 2018.
Do your employees appreciate how their retirement savings grow from your valuable employer contribution and government tax relief ?
- If you chose to phase in contributions to your workplace pension over time then they are due to increase automatically with effect from 6 April 2018
- Assuming you chose to contribute based on Band Earnings your employees contributions will triple to 3% of Band Earnings
- Your contributions will double to 2% of Band Earnings
- Band Earnings for 2018/9 are all earnings between £6,032 per annum ( £502 per month) and £46,384 per annum ( £3,902 per month )
- You will need to remind your employees that both their and your contributions will increase automatically from 1 April 2018
- This may be an opportunity to remind them of the value of saving for retirement given your significant contribution and the tax relief provided by the government.
- This could be by letter or face to face communication
If you would like to discuss communication options or have any questions at all about auto enrolment or workplace pensions then set up your free, no obligation half an hour meeting with me, Elaine Tarver today by calling 01771 275 1336 or by emailing me at email@example.com. I will happily suggest some options to you and answer your questions.