Private pension

SOLVED
Hello. One of our employees wants to contribute towards his private pension. Heâ€Tms already a member of our NEST pension scheme. What would I need to do in this case? Create a new pension scheme and allocate it to him? Also, what sort of questions I should ask about his pension scheme? I thought about the following: type of scheme, does it use qualifying earnings, do I tick the box deduct before tax? Thank you very much.
  • 0
    verified answer

    Hi Adriana,

    Yes you’d need to create a new pension scheme for this employee.

    With regards to the information you need to set up a pension scheme, you would need answers to the following questions: 

    1. What type of scheme is it?
    2. What type of scheme you operate?
    3. Does it use qualifying earnings for pensionable pay?
    4. If it doesn't use qualifying earnings, which pay elements are pensionable?
    5. Is it a salary sacrifice scheme?
    6. Are the employee and employer contributions based on a fixed amount or percentage?
    7. What are the amounts or percentage rates for the employee and employer?
    8. Are the employee contributions deducted before or after tax?
    9. What is your provider / employer reference for the scheme?

    If this has answered your question, please click on the ‘This helped me’ link below.