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Employer pension contributions on maternity leave

(8 Posts)
HandbagsandSnotrags Tue 01-Apr-14 17:30:07

Does anyone know if your employers contributions to your pension are a statutory thing they have to make during maternity leave or if it depends on your contract?

If they are supposed to pay should it be based on your usual salary or on maternity pay?

I can't find a clear answer online and need a good source to discuss with hr at work.

thanks in advance.

Polkadotpatty Tue 01-Apr-14 17:46:16

The gov.uk website advice about pensions says: "You and your employer will continue to make pensions contributions if you are getting paid during maternity leave. If you are not getting paid, your employer doesn’t have to make pensions contributions unless your contract says otherwise. Check your employer’s maternity policy."

Website source here: https://www.gov.uk/workplace-pensions/changing-jobs-and-taking-leave

I believe this would be the agreed % of the amount you are being paid during maternity leave, rather than your usual salary, but others may know better!

HandbagsandSnotrags Tue 01-Apr-14 17:59:47

Thanks. Will check the link.

HandbagsandSnotrags Tue 01-Apr-14 18:56:55

Ok, assuming SMP counts as pay then they should contribute. Still not clear if the usual amount or percentage is what should be paid...

Reason for query is that employer has done both - paid usual percentage in first maternity leave (2006-7) but usual amount more recently. Their explanation is that they don't have to pay but do as part of t & c's and the policy was improved between the two leaves. Hence why I am trying to clarify what situation is.

baffledmum Tue 01-Apr-14 20:48:37

Do you make pension contributions via salary exchange or out of your net pay?

Your employer contribution should be paid in full in any event ie. if they paid in 4% before your leave and that was £100 they should continue with that £100 for weeks 1-39 of your mat leave. Your own contribution if it was 2% would drop to being 2% of SMP and then possible zero at some point. But it is different if you use salary exchange.

HandbagsandSnotrags Tue 01-Apr-14 21:45:35

Not salary exchange. We both pay 5% in. In 2006/7 they paid 5% of SMP, in 2012 5% of my salary. Spotted it when filing pension statements and queried. But maybe rules changed between the two leaves?

AlpacaYourThings Wed 02-Apr-14 00:17:36

There are two threads on the, I posted this on the other one,

Employer pension contributions need to be paid as if you were still at work (ie on your pre maternity salary) your contributions are paid based based on your MP.

If your pension contributions are deducted via salary sacrifice your employer has to pay your contributions as well as their own if you are only on SMP.

HandbagsandSnotrags Wed 02-Apr-14 19:56:33

Sorry about the multiple threads - dodgy phone. Do you know if the rules were the same in 2006? We're not talking about lots of money (sadly) but my pension is small enough and every little will help if I'm entitled to it.

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