It’s important that the contribution structure you set up for your scheme is both competitive and rewarding for your employees.
Monthly payments can be a fixed amount or a percentage of salary.
Both you and your employees can make single contributions at any time.
Your employees may be able to transfer pensions from other providers. Transfer payments from one pension plan to another don’t receive tax relief. Transferring may not be in everyone’s best interests as they could lose valuable benefits which can’t be replaced. Those that are interested in transferring should speak to a financial adviser before making a decision.
A matched contribution structure can help encourage your employees to pay more into the plan. You might want to simply match the contribution each employee makes or you may want to limit your contributions by setting a maximum. There's lots of ways to set it up - here's an example:
|Employee contribution||Employer contribution|
Phasing of contributions allows you and your employees to spread the cost of contributions over a period of time.
You can choose to follow the statutory phasing path or set up your own custom path.
Find out more about phasing.