It’s not uncommon to see companies making pension contributions for those on parental leave based on their statutory maternity pay.
However, this is not entirely correct and could result in a penalty for the Employer whilst leaving Employees worse off at retirement!
Whilst Employee contributions will be based on their actual pay being received (for example, statutory maternity pay), Employer contributions need to be based on the employee’s pensionable pay before they went on maternity leave.
It’s important for an Employer to be aware of their pension duties so they remain compliant with the latest regulations. Having our team on hand not only helps an Employer to do so but also provides their staff with access to a Financial Adviser for information and guidance on their financial planning needs.
Get in touch with us today for a free quote and information on how we can help you and your staff make the most of your workplace pension scheme!