Employer Pension Contributions
Employer Pension Contributions
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Discussion

RyanOPlasty

Original Poster:

896 posts

237 months

Friday 9th February 2018
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In the small print of my employee handbook ( from 2005 ) I have noticed that my employer only pays pension contributions up to the age of 60, although the retirement age is stated as 65. I realise that legislation has changed significantly since then, but is it legal for them to do this? It seems to me to be age discrimination.

otherman

2,265 posts

194 months

Friday 9th February 2018
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What type of pension is it? If it's final salary it doesn't matter, they're on the hook for the liability whatever. If it's defined contribution then it's illegal, they have to make at least 1%.

RyanOPlasty

Original Poster:

896 posts

237 months

Friday 9th February 2018
quotequote all
It is a defined contribution scheme - 1% is a lot less than they are paying now. The only difference would be the employee's age

PurpleMoonlight

22,362 posts

186 months

Saturday 10th February 2018
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Are you sure it's not a typo in the staff handbook?

Welshbeef

49,633 posts

227 months

Saturday 10th February 2018
quotequote all
RyanOPlasty said:
It is a defined contribution scheme - 1% is a lot less than they are paying now. The only difference would be the employee's age
Note they couldn’t simply make the change either for reduced pension terms from x% now to (well it’s now 2% not 1% and will go up to 5% so spending on how old you are now and what % they pay in there may be no difference.

To change terms needs consultation