In line with the new regs my company has offered me a Stakeholder pension. They are going to contribute 3% and I match it. Great! I thought until it was discovered that the company's contribution will be considered when the Salary review happens at the end of April.

Playing Devil's advocate I now have to presume that I will effectively be paying 6% into the pension scheme. What pisses me off is that the company will not tell us our new salary until after we have made a decision on joining the pension.

The company can get relief on NI contributions as well as Corporation Tax yet the money is really out of my pocket! So if I don't join and decideto get my own pension and put in 6%, I will be the one getting 6% worth of tax relief.

Nice company eh!

-- Anonymous, March 30, 2001

Answers

ap

-- Anonymous, March 30, 2001

Oh, that`s what this thread is all about...........I thought you`d heard how old I am next months!(;o)

-- Anonymous, March 30, 2001

I'm afraid it's the way of the world these days DB.
BTW, as I understand it, a 3% company contribution is the absolute minimum they can contribute under the new Stakeholder Pension legislation - that might just possibly help you in your 'discussions'.
I'm sure you can contribute whatever you want - at least up to some pretty large amount - and claim it as a tax deduction (ie. deducted from your salary before income tax is levied).

-- Anonymous, March 30, 2001

I don't get it, surely the firm cannot insist that you only have a couple of weeks to decide to join or forever be excluded. Just wait until the salary figures are released then decide. It's true that the company will not be out of pocket, but then again you get something out of it so there are no losers.

-- Anonymous, March 30, 2001

That option has been banded about by colleagues but then there is the unquantifiable aspect of having the Company knowing exactly what you are up to and therefore will contrive to bugger you about for the next salary review.

I don't see how the company loses out here because effectively their 'contribution' is being paid by me in the shape of a salary increase of N%-3% (For Pension). I lose out because I am not getting tax relief on 3% but I am effectively paying for it.

Why they can't just declare what percentage will be used in the salary review is beyond me. All my colleagues are heavily against the Company now, but they don't quantify that.

-- Anonymous, March 30, 2001

DB

On something as potentially serious and far-reaching as this, don't p!ss about.

Well worth getting some independent professional financial advice - particularly if a couple of you shared the fee if a joint consultation is possible.

As my Grandad used to say "divvent f*ck with ya pension".

-- Anonymous, March 30, 2001