Changes to your auto enrolment pensions contributions

The minimum contributions that Downton and you pay into your automatic enrolment workplace pension scheme are increasing.  

The increases are part of the Government’s initiative to help more people save for later life via their workplace pension scheme. By law, these will be done in two phases on set dates. The first increase will be from 6 April 2018 and the second from 6 April 2019.

The contributions will still be based on your Qualifying Earnings (£5,876 – £45,000 for tax year 2017/18). Below is a guide to the contribution increases. 

 

Contributions from Downton

Your Contributions via Salary Sacrifice

Total contributions (paid as an Employer contribution)

Now

1%

1%

2%

From April 2018

2%

3%

5%

From April 2019

3%

5%

8%

As your contributions are taken from gross pay via salary sacrifice you receive tax relief at the highest rate of tax that you pay and additionally save on National Insurance contributions too.

You don’t need to do anything, payroll will automatically adjust the amounts we contribute and those we deduct from your pay from 6 April 2018, and again from 6 April 2019.

 As the scheme uses qualifying earnings as the basis to calculate contributions, a reduction in salary due to salary sacrifice will mean a lower basis on which to base minimum contributions. Therefore, if the minimum contribution increase reduces your salary below that of minimum wage, we will change the basis of how we deduct your contributions to a net pay arrangement. Under the Government’s legislation, they require that contributions via a salary sacrifice method should not reduce your salary to below the minimum wage.

You were provided with information regarding Salary Sacrifice when you were enrolled into the Downton pension scheme. However, if you would like to review what salary sacrifice means for you, please contact our trusted pension partner, Brunsdon Employee Benefits Ltd on the details below or visit www.pensionsadvisoryservice.org.uk.  

If you wish, you can increase the amount you regularly put into your pension fund above the minimum contribution levels. Our contributions levels will remain as detailed above. If you wish to increase your contribution levels above the minimum levels detailed above, please email payroll and they can implement this for you, as long as the result does not reduce your salary to below the minimum wage.

If you wish to speak to someone regarding the minimum contribution increases and how this may affect you, please contact our trusted pension partner, Brunsdon Employee Benefits Ltd on the details below:

Brunsdon Employee Benefits Ltd

Goodridge House

Goodridge Avenue

Gloucester

GL2 5AE

Email: group.benefits@brunsdon.co.uk

Pension Member help desk: 01452 623645

Brunsdon Employee Benefits Ltd are an appointed representative of Brunsdon Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA). The FCA does not regulate some aspects or automatic enrolment.