Pension question

[stevieb]

I know this is not going to be a easy cut and dry answer. But my employer wants to change the pension contributions for my pension.

Can the company change there contributions like this?

At preset they are putting 10% with a 5% contribution from me.
The future proposals limit the company contributions to 5%

This is a 5% reduction from my employer. Which most of us are quiet pissed off with

Any advice would be good

Thanks

Edited by stevieb on Monday 13th September 12:01

[Countdown]

Yes they can

They should go through a "consultation" period first to explain why they are doing it and to consider other options. However if, at the end of the day, they cannot come to a mutual agreement with staff, they can impose it.

Do you have a union ?

[The Leaper]

There are many, many employers who have achieved a reduction in their pension contributions. It is not necessary to "consult" but it is necessary to give formal notice to members. Consultation may be required if a union is involved and there's agreement on consultaion before any changes are made to employment provisions.

There's no doubt that the employer can cut its future contributions. It could. if it wished, completely discontinue any future contributions so I'd say a future 4% is better than nothing. Employees, with union help or not, need to consider what the consequences could be if the proposal is seen off: maybe the impact on the employer will mean that jobs will go, for example.

As indicated in a post above, a combined 15% is a reasonable amount, but not great, to be going into a pension pot, although this will depend on the member's age and expectations.

Given the cut goes ahead, best advice is for you to make up the difference by additional contributions but, obviously, an addtional 6% of pay will be a stretch.

Also, be aware that there's legislation in place that will, soon, require employers to contribute to a pension plan. There will an opt out facility but this will be the employee's decision: if the employee doesn't want to pay contributions he can decide not to and then the employer need not pay either. I'd say and employee who doesn't want to have a pension plan and therefore missing out on the employer contributions will be making an odd decision. Undoubtedly, financial resources and priorities will form part of the decision.

R.

R.

[stevieb]

Thanks for the replies.

Oh well Seem like we are all screwed then,... So fr i have been through 2 redundancy selction process. Still have a job. But have not had a payrise for a while.

Now they are changing the pension plan.

Currnet is banded by age. I get a 10% contribution from my employer for my 5% contribution. It changes when i turn 40 to 15% comapany for my 7.5%, and then the final step is at 50 where the company contribute 20% for my 10%.

The future plan is absolute bks. it is based on your grade. 10% for anyone on the exec board. dropping 1% per grade

Grade A 10%
Grade B 9%
Grade C 8%
Grade D 6%
Grade E 5%

All lower grade 3%

So it seems like my salary that was initially agreed based on the package (including Pension) is up in the air. Oh well time to get ringing around all the recruitment agencies.

[bogie]

sounds pretty generous to me to be honest ! ...unless you are a name your price exec on a few hundred grand of course

companies that have generous pension schemes are getting thin on the ground these days

the average seems to be they match what you put in, up to a certain limit of course

[stevieb]

musclecarmad said:

your old scheme was absolutely amazing

That it may be a reasonable pension, but it was part of the overall package of benefits frommy employer.

As the weeks go by the benefits are reducing to next to nothing. The salaries which we agreed at the start of the contract factored in the benefits package and now its all starting to go.

Shame that there is no jobs out there at the moment otherwise I would be out like a shot.

Edited by stevieb on Monday 13th September 12:04

[Eric Mc]

stevieb said:

musclecarmad said:

your old scheme was absolutely amazing

That it may be a reasonable pension, but it was part of the overall package of benefits frommy employer.

As the weeks go by the benefits are reducing to next to nothing. The salaries which we agreed at the start of the contract factored in the benefits package and now its all starting to go.

Shame that there is no jobs out there at the moment otherwise I would be out like a shot.

Edited by stevieb on Monday 13th September 12:04

And that's why they feel they can do what they are doing.

[stevieb]

Eric Mc said:

stevieb said:

musclecarmad said:

your old scheme was absolutely amazing

That it may be a reasonable pension, but it was part of the overall package of benefits frommy employer.

As the weeks go by the benefits are reducing to next to nothing. The salaries which we agreed at the start of the contract factored in the benefits package and now its all starting to go.

Shame that there is no jobs out there at the moment otherwise I would be out like a shot.

Edited by stevieb on Monday 13th September 12:04

And that's why they feel they can do what they are doing.

So True.. But the situation may be bad now.. But its not always going to be like that. in my industry it is the people who are known and not the company. But my on the side contracting business is starting reasonably well to suppliment my main income at the moment.