Pension Scheme Changes April 2016

[DEESMITH1970]

I know HMRC detail certain criterias for staff to be able to receive staff pensions from Employers i.e. to earn £10,000 pa or more, but what if the staff have Contracts that are minimum 20 hours per week, so would not earn over £10k but some work overtime that would/could take them over £10k ? Is it just based on their contracted hours or the actual hours worked ? Searching websites but cannot find the answer to this. Thanks

[fiction-factory]

I am not sure what you mean by having to earn £10000.
Employers can choose o offer a pension to anyone.Are you referring to teh requiremnt for employers to offer a NEST type pension

[DEESMITH1970]

Employers must enrol all workers who:

are aged between 22 and the State Pension age
earn at least £10,000 a year
work in the UK
You must make an employer’s contribution to the pension scheme for those workers.

[Buenchico]

Where an employee (aged between 22 and the State Pension Age) has monthly gross earnings of over £833 per month (or over £192 per week) irrespective of how those earning are achieved the employer must automatically enrol them into the pension scheme.

If their gross earning are below that level (but still above £486 per month or £112 per week) the employee has the right to opt into the pension scheme and, if they choose to do, must then be treated in the same way as an employee with the higher rate of earnings.

http://www.thepensionsregulator.gov.uk/employers/check-who-you-need-to-enrol.aspx

[DEESMITH1970]

Thanks for that.

[fiction-factory]

I think these compulsory pensions at the moment are pretty much a waste of time where the employer chooses the lowest rate 2% I think, aprticularly (as with my employer) the employer tries to find a way of passing on its obligation to paya matching amount. I worked somewhere recently for four months and accrued a pension pot of £80. I couldn't get an annuity with it and to cash it means I've got to get a copy of passport signed by a doctor/solicitor plus poof of address and bank account just to prove my identity. Okay, if I'd worked there for 40 years it would have been worthwhile and maybe it will be better when the minimum increases to something like 6%.
I know some employers who use zero hours type contracts will try to ensure their employees' hours and pay falls just below the threshold so some will miss out

[Maydup]

By law all employees below the threshold can opt in, although they might not be eligible for employers matching contribution. equally those above the threshold either regularly or occaisonally, can all opt out if they like.

The rules apply to all earnings regardless of the contract Dee and the contributions will wax and wane with the varying hours worked.