Peoples Pension Advice
Discussion
My employer has recently changed over to the Peoples Pension - the old scheme was wound up by the provider.
I have run into a payment issue and wanted to make sure I understood it correctly. There appears to be an upper/lower earning limit in place on the scheme:
Based on the current tax year 2020/21, the lower earnings threshold is £6,240. The upper earnings threshold is £50,000 - giving a pensionable 'window' of £43760 - I assume these values both increase with time, but I assume the 'window' will remain broadly the same?
Assuming I earn above the upper limit - is is fair to say that my employers contributions (matched to max 5%) have been maximised and will ultimately never increase, because the pensionable 'window' is the same?
Just wanted to make sure I understand correctly.
Thanks in advance.
I have run into a payment issue and wanted to make sure I understood it correctly. There appears to be an upper/lower earning limit in place on the scheme:
Based on the current tax year 2020/21, the lower earnings threshold is £6,240. The upper earnings threshold is £50,000 - giving a pensionable 'window' of £43760 - I assume these values both increase with time, but I assume the 'window' will remain broadly the same?
Assuming I earn above the upper limit - is is fair to say that my employers contributions (matched to max 5%) have been maximised and will ultimately never increase, because the pensionable 'window' is the same?
Just wanted to make sure I understand correctly.
Thanks in advance.
jimmy7 said:
My employer has recently changed over to the Peoples Pension - the old scheme was wound up by the provider.
I have run into a payment issue and wanted to make sure I understood it correctly. There appears to be an upper/lower earning limit in place on the scheme:
Based on the current tax year 2020/21, the lower earnings threshold is £6,240. The upper earnings threshold is £50,000 - giving a pensionable 'window' of £43760 - I assume these values both increase with time, but I assume the 'window' will remain broadly the same?
Assuming I earn above the upper limit - is is fair to say that my employers contributions (matched to max 5%) have been maximised and will ultimately never increase, because the pensionable 'window' is the same?
Just wanted to make sure I understand correctly.
Thanks in advance.
It all depends upon whether your employer is sticking to the Automatic Enrolment minimum rules or not - and the good news is it sounds like they are not.I have run into a payment issue and wanted to make sure I understood it correctly. There appears to be an upper/lower earning limit in place on the scheme:
Based on the current tax year 2020/21, the lower earnings threshold is £6,240. The upper earnings threshold is £50,000 - giving a pensionable 'window' of £43760 - I assume these values both increase with time, but I assume the 'window' will remain broadly the same?
Assuming I earn above the upper limit - is is fair to say that my employers contributions (matched to max 5%) have been maximised and will ultimately never increase, because the pensionable 'window' is the same?
Just wanted to make sure I understand correctly.
Thanks in advance.
Under the rules they are only legally bound to make a 3% gross emplouer contribution to your gross 5% (including your tax relief) within the earnings band you have detailed.
As your employer has offered to match your contribution up to 5% then it appears they are providing a more generous scheme and therefore may also not be using the earning band cap.
The only way to find out is to ask them. You should have already had documentation from them that should spell this out, TBH.
PM me if you would like me to go through it for you.
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