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Salary sacrifice on maternity leave. Employer pension contributions

(12 Posts)
elizabethtailored Wed 11-Dec-13 16:46:02

Apologies if these has been done to death but I cannot find any recent threads. My company is starting a workplace pension scheme from January. If I sign up to salary sacrifice are they obliged to continue paying my pension contributions (their share) throughout my maternity leave at the same level as they do now before I am on ML? I am finding the HMRC site rather confusing and just want to be prepared.

trilbydoll Wed 11-Dec-13 17:08:39

I think your contributions fall in line with your pay, but the employer contributions remain constant, regardless of how the scheme is set up.

It is the same as having a company car - you would keep that during maternity leave, any other benefits should also stay the same.

TheDoctrineOfSanta Wed 11-Dec-13 18:31:03

Do they pay enhanced maternity pay?

Lonecatwithkitten Thu 12-Dec-13 07:40:22

Having just set up my pension scheme I have been through all these scenarios.
If you pay your pension contribution as a salary sacrifice ie before Tax and NI it is term a benefit in the same way childcare vouchers are and must continue exactly the same whilst you are on maternity leave.

TheDoctrineOfSanta Thu 12-Dec-13 07:58:13

But remember the 90% period if SMP will be based on the post salary sacrifice salary.

elizabethtailored Thu 12-Dec-13 10:02:13

No enhanced maternity pay. Just government statutory min.

So I receive the lower rate of childcare vouchers through salary sacrifice already, my pension will be the same as this - all of these payments will continue to be met by my employer through ML?

I will not be contributing to my pension at all when I am on maternity leave - is that correct please?

Through both OML and AML?

Is there a succinct link I can quote to my employer does anyone know please?

baffledmum Fri 13-Dec-13 10:32:34

Hello, in a salary exchange scheme all contributions become employer contributions, although notionally you will have an employee and employer contribution. Consequently while you are on mat leave your contributions continue as before so your employer will meet the cost of both of them them. Your employer may try to prevent you from joining the pension while on mat leave, I can tell you that to do so simply because you are on mat leave is discriminatory and your employer should be aware of that. I manage a flex site & there is no way we'd prevent anyone on mat leave from joining the pension while on mat leave.

elizabethtailored Fri 13-Dec-13 11:59:56

Baffledmum - thank you very much for your reply. Much appreciated.

My employer will meet the cost of my contributions as well as their own while I am on maternity leave? (I am not on maternity leave yet so would be joining the scheme while still working full time).

Do you know if there is a link or page which spells this out clearly please so I can quote it to my employer when needed? (I am foreseeing problems as have seen other co workers have similar issues so would like to be pre armed).

mariefab Fri 13-Dec-13 16:22:21

If you are just receiving SMP and have a salary sacrifice agreement for childcare vouchers and pension; it appears, from the info provided by HMRC in the link below, that your employer must provide the childcare vouchers for 12 months of maternity leave but they are only required to provide pension contributions for the 39 paid weeks.

baffledmum Fri 13-Dec-13 19:12:19

Under salary exchange your pension contributions are classed as employer only and are therefore a non-cash benefit. All non-cash benefits continue for 52 weeks so your employer should make full contributions for 52 weeks. It is unlikely that they will like this though... If I get chance at work on Monday I will PM you the legal guidance we obtained at work.

elizabethtailored Mon 16-Dec-13 09:39:24

That would be great - thank you.

elizabethtailored Wed 18-Dec-13 10:57:04

Bump pls!

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