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Suspended Employer Pension Contribution

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  • 04-03-2010 5:02pm
    #1
    kneelo
    Registered Users Posts: 7 ✭


    Hi,

    Apologies if this has been answered somewhere already but I'm not really sure what to search for.

    My employer suspended their pension contribution around this time last year. it was mentioned to me (very vaguely) recently that they can only suspend it for a maximum of one year.

    Is there truth to this? Or is there anything relating to employers contributions suspension being limited to one year?

    Thanks in advance........


Comments

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    #2
    FergA.com
    Closed Accounts Posts: 16 ✭FergA.com


    As there's no legal obligation on an employer to make a contribution in the first place, there's no rules in the Pensions Acts saying that they can only suspend it for a finite period.

    If your contract of employment says you're entitled to an employer pension contribution, you might have a claim for breach of contract...but that's only if you fancy taking a case against your employer and they haven't already changed the contracts. (Might not do your promotion prospects much good...)

    Cheers,


    Liam


  • Options
    #3
    BiddyBop
    Registered Users Posts: 15 ✭BiddyBop


    Hi Kneelo

    You mentioned your Employer suspended their contribution but are the employees still paying in to the Pension Plan?

    It is true that there is no legal obligation for the Employer to establish an Occupational Pension Plan for their employees, however if one has been established and is still active, i.e. if the Employees are still contributing, the Employer is obliged to pay in to it. Unfortunately guidelines around how much are very vague, it just has to be 'meaningful'. Do you know what type of pension plan you have?

    If the Employer decided to close the scheme and wind it up unfortunately there is nothing you can really do about it.


  • Options
    #4
    FergA.com
    Closed Accounts Posts: 16 ✭FergA.com


    In terms of Occupational Pension Schemes, the term "meaningful" is commonly interpreted as 10% of the overall contribution, which is almost negligible. If the employer is also contributing to a Death in Service scheme this premium can be considered part of the 10% figure so they may not have to make pension contributions at all.

    If the scheme is a group of PRSAs, there is no obligation on the employer to make any contribution.


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    #5
    kneelo
    Registered Users Posts: 7 ✭kneelo


    Hi Guys,

    Apologies for the delay - it seems the notifications didn't come my way, I didn't realise anyone had replied!

    I (and all employees) are still contributing, it was just the employer contribution that was suspended. It's a defined contribution pension. My understanding being that the employer agrees to pay a fixed amount (or % ) per year.

    I would just like to know if we should (or even if we're in a position to) start asking questions after a year??

    Thanks!!


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