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Is it unusual these days for an employer not to contribute to pension scheme?

(8 Posts)
Jemster Sat 20-Dec-14 07:55:44

My DH has a pension with his company but they don't put in any contributions, it's just his.
My employer puts in at least double my contributions so I'm wondering if DH would be better off looking ar something different as he's not getting any benefit from being in Co scheme.
I thought the whole point of a work scheme was that the employer paid in to?
Is anyone here in a work scheme where the employer puts nothing in?

addictedtosugar Sat 20-Dec-14 08:11:39

I'd say its unusual, but not unheard of.

How big is the company? Auto enrolment will be coming soon, and then the company will have to pay in. So its probably worth sticking with it.

Is the scheme salary sacrifice? If so, he will be saving (a small amount) of NI.

LordEmsworth Sat 20-Dec-14 08:20:19

It's not unusual in my experience, but as addicted says that will be changing as auto enrolment is rolled out.

Many smaller companies (even medium sized ones) don't give pension contributions; they are obliged to have a scheme that they "recommend" but that will often just be a stakeholder pension with one of the big pensions providers.

The point is to encourage people to contribute to a pension, as if the employer didn't have one then most of us wouldn't do anything about the idea of saving for retirement.

Jemster Sat 20-Dec-14 08:21:27

Hi
It's a small company about 30 employees so they're probably one of the later ones to have to start auto enrolment. I told my boss (HR Manager) that his co. don't pay in and she was horrified which rather worried me!

mandy214 Sat 20-Dec-14 11:41:58

Depends what field you are in - definitely not unusual in my experience. Companies generally have to provide a scheme (it is being rolled out at present depending on how many employees the business has) but certainly in the legal profession, the vast majority of medium / smaller firms don't contribute to a scheme. And even in the larger firms, when they hit hard times, the pension scheme takes a hit. My previous firm had always paid 5% into the scheme (provided the employee also paid 5% in) but when they hit hard times, they stopped paying into the scheme for a year or two.

Jemster Sat 20-Dec-14 12:19:54

Ok thanks that makes me feel a but better. I am very lucky as my company have a generous scheme. My boss made feel as though my dh needs to leave his company immediately as they dont make contributions!! I guess it would be good though if he made payments higher than the minimum so will speak to him about this.

caroldecker Sat 20-Dec-14 12:42:22

How does his overall pay/conditions compare - he may be paid more because of no pension contribution, you need to look at the whole package

OmnipotentQueenOfTheUniverse Sat 20-Dec-14 12:46:02

I don't think it is unusual at all. Your scheme sounds very generous though!

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