Confusion over employer contributions in RACs

Before 6 April 2006, contributions to RACs were restricted to a certain percentage of earnings depending on a member’s age, while employers were not allowed to make contributions on behalf of an employee. Although there have been no new RAcs since 1988, following Pensions Simplification, existing RACs should have come into line with other personal pensions to allow employers to make contributions to the scheme. But Mike Inkley, a director of IFA firm Sanderson Law, says in his experience this is not necessarily the case, with many providers not accepting the additional contributions. ...