I am due to commence mat leave in April this year. My company has switched to a salary sacrifice scheme in January of this year (after the dates for calcualting my AWE). Also I am due a pay rise in March so my first question is what is the correct basis for calculating my AWE?
My other question surrounds the pension payments that form part of the salary sacrifice scheme. If I select salary sacrifice of 8% my employer will match it and so since January my pension has been funded by 16% employer only contributions (no contributions directly from me). Within the supporting documents of the salary sacrifice scheme it states :
What happens during periods of statutory maternity leave?
Company contributions will continue to be based on your pensionable salary at the date your period of leave commences. You will be asked at what level, if any, you wish personal contributions to be deducted from your pay during the statutory maternity
leave period. During any period of unpaid maternity leave, the company's (and where relevant
your own) contributions into the pension scheme will cease. These will recommence on
your return to work unless you specify otherwise.
I interpret this as they will stop paying any contributions - is this correct and should they continue to make contributions at and at which percentage?
My company only offers statutory maternity pay and so officially I will not be receiving any salary. They do however continue to provide a car allowance that forms part of a scheme that is run outside of the salary sacrifice scheme which is subject to normal NIC's and tax.
Can they use this to fund my pension contribution even though it is paid outside of the salary sacrifice scheme?????