Impact of Covid-19 on pensions. Advice for employers and employees

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We are currently looking into the impact of Covid-19 and auto-enrolment pensions payments and contributions. We list below the latest press release from NEST the largest provider of auto-enrolment pensions schemes.
 
https://www.nestpensions.org.uk/schemeweb/nest/nestcorporation/news-press-and-policy/Nest-responds-to-coronavirus.html
 
https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/retirement-pot/coronavirus.html
 
As and when we find out more, we will update you.

Taking a break

An employee is free to take a break from paying pensions contributions at any time if you want to. There are two ways they can do this if they feel they need to.

1. By logging into their online pension account and updating the way their money is managed 
2. By asking their employer directly to stop taking contributions. 

 

Employee contributions

Where an employee is worried about their financial situation and they are auto-enrolled onto a payroll pension scheme, they do have the option of opting out should they wish to preserve cash. This will save them 5% contributions and it should also be remembered that once the Covid-19 situation is over they can always opt-back in.

If SRC-Time look after the auto-enrolled pension scheme we will take care of this all for the employee and employer. If the employee opts out and then opts back in, we will receive notification from the pension scheme provider.
 
It should be noted that there is no refund available of contributions already made by the employee or employer into the scheme unless the employee enrolled within the last 30 days and opts out prior to the 30 day time limit. In this situation a refund of contributions will come back to the employee in their next payslip.
 
Finally, by taking a break from contributing or stopping payments altogether means that the employee will miss out on contributions the employer would make.

If you have any questions or concerns, please do not hesitate to contact us we are here to help! 01273 326 556
 

SRC-Time Ltd
2nd Floor
Stanford Gate
South Road
Brighton
BN1 6SB

T: +44 (0) 1273 326 556
F: +44 (0) 1273 733 827
E: info@src-time.co.uk

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