FAQs
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"How much do I need to pay into my employees’ pension?"
If the qualifying earnings basis is being used, the minimum contribution is 8% with at least 3% from the employer on qualifying earnings falling between upper and lower earnings limits of £6,240 and £50,270 a year.
"Why does the pay reference period differ from the earnings period?"
The pay period (PRP) is the time between regular wages or salary. The earnings period is the time that salary is worked for.
"Can I pay further contributions after taking a flexible lump sum?"
Yes, however, the annual allowance is a limit to the total amount of money you can save into your pension arrangements across all of the different schemes you belong to and receive tax relief on.
"What are qualifying earnings?"
These are the earnings your pension contributions are usually based on if you contribute to a pension scheme.
"What are pensionable earnings?"
The earnings used to calculate a member’s pension contributions are known as their ‘pensionable earnings’.
"What is the maximum employer’s contribution?"
There’s no maximum employer contribution – employers can pay any amount of pension contributions for their employees.
"What’s the maximum amount I can pay into my pension?"
You can pay as much as you like into your pension, but there are limits to how much tax relief you can receive.
"What’s an earnings basis?"
The earnings basis describes the type of earnings used when pension contributions are worked out.
"Can I change my contribution amount online?"
If you’re currently making payments into your scheme via Direct Debit, please contact us to amend the amount you are paying in.