Keeley Paddon: Exploring pension scheme contributions for furloughed staff

Four questions answered

clock • 3 min read

In these difficult and unusual times, we have been asked a number of questions from financial advisers regarding pension scheme contributions for furloughed staff, writes Keeley Paddon. Here, The SimplyBiz Group head of pensions technical summarises the key points around this area, and sets out responses to a few of the most frequently asked questions

Ultimately, employers may have three options when considering workers during challenging times for the business: Unpaid leave Redundancy Furlough With the first two options, the worker will not benefit from pension contributions. If the worker is furloughed, however, they will.   In early April, the Government announced it was going to cover the minimum auto-enrolment pension scheme contributions for staff furloughed as a result of the Covid-19 crisis.  The Government also clarified that: It would cover employer National Insurance and pension contributions of furloug...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

March 2024: Month in review with deputy editor Jenna Brown

March 2024: Month in review with deputy editor Jenna Brown

Take a look at some of the news and feature highlights of the last month

Jenna Brown
clock 28 March 2024 • 5 min read
Wren Sterling adds £265m in client assets in latest deal

Wren Sterling adds £265m in client assets in latest deal

First advisory firm purchase of 2024 for national financial planner

Jenna Brown
clock 28 March 2024 • 1 min read
Consumer Duty Alliance looks to attract advice industry talent

Consumer Duty Alliance looks to attract advice industry talent

New Talent Alliance will be chaired by M&G Wealth Advice MD Tom Hegarty

Isabel Baxter
clock 27 March 2024 • 2 min read