Pension contribution - Salary Sacrifice

[theplayingmantis]

I have been contributing 25% to my pension last couple of years, wanted to contribute 30% this year, but my company has a threshold of 30% that you are allowed to contribute.

Are they leaglly allowed to restrict how much of my salary i can pay into my company pension scheme?

[Triple7]

Do you not have the option of AVC’s?

[JulianPH]

They cannot legally restrict what you chose to put into a pension each year but the can restrict the amount they are prepared to add on your behalf (subject to AE rules) and the amount they are prepared to facilitate through salary sacrifice.

This does not prevent you from opening another pension/SIPP and making net contributions to this. Your provider will reclaim the basic rate of tax back at source and you reclaim anything else due via your tax return, so it works out the same anyway.

You obviously have to make sure your combined contributions do not go over the annual allowance though.

[TiminYorkshire]

At our place of work we can only salary sacrifice down to the equivalent of the minimum wage through the company DC scheme.