Giant Nest Pension Contributions
+ Reply to Thread
Posts 1 to 7 of 7
  1. #1

    Nervous Newbie


    Join Date
    Jul 2017
    Posts
    2
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Giant Nest Pension Contributions

    Hi all,

    After noticing the pension contributions on my payslip (PAYE, weekly) to be ridiculously small I started to investigate how the contribution figure for myself and for Giant was arrived at. Giant took about 3 weeks to give me an obscure answer, but one that was sufficient enough for me to work out what was going on, along with a lot of online research.

    It appears the reason the contribution for both my part and their part is so small is because they don't take my full pay into account, rather have some sort of arbitrary "basic pay" level set, which is just over half of my actual pay. The contributions are then a percentage of that minus NI contributions. I've tried to find information on whether that practice is legal, and how far they can push it, but I'm not sure of what it is I'm searching for.

    Reading up on the Nest pension, the government want to ramp up contributions for both employee and employer over the next couple of years. However, if the employer can set an arbitrary pay rate at which to make the contributions on, it makes a mockery of the government's intentions.

    Can anyone shed any light on this practice or have any related information?

    I also asked Giant how I could increase my contribution, they said I couldn't unless I cancelled the Nest pension and started with someone else. Is that true, or are they misleading for their own benefit?

    Many thanks for any intelligence you can offer on this subject.

    C

  2. #2

    More time posting than coding

    lucycontractorumbrella's Avatar
    Join Date
    Feb 2013
    Location
    Colchester, Essex
    Posts
    414
    Thanks (Given)
    51
    Thanks (Received)
    41
    Likes (Given)
    246
    Likes (Received)
    90

    Default

    Quote Originally Posted by condon View Post
    Hi all,

    After noticing the pension contributions on my payslip (PAYE, weekly) to be ridiculously small I started to investigate how the contribution figure for myself and for Giant was arrived at. Giant took about 3 weeks to give me an obscure answer, but one that was sufficient enough for me to work out what was going on, along with a lot of online research.

    It appears the reason the contribution for both my part and their part is so small is because they don't take my full pay into account, rather have some sort of arbitrary "basic pay" level set, which is just over half of my actual pay. The contributions are then a percentage of that minus NI contributions. I've tried to find information on whether that practice is legal, and how far they can push it, but I'm not sure of what it is I'm searching for.

    Reading up on the Nest pension, the government want to ramp up contributions for both employee and employer over the next couple of years. However, if the employer can set an arbitrary pay rate at which to make the contributions on, it makes a mockery of the government's intentions.

    Can anyone shed any light on this practice or have any related information?

    I also asked Giant how I could increase my contribution, they said I couldn't unless I cancelled the Nest pension and started with someone else. Is that true, or are they misleading for their own benefit?

    Many thanks for any intelligence you can offer on this subject.

    C
    Hi Condon

    You appear to have been auto-enrolled into the scheme, which is normally done at the basic rate on the contract which is more than likely to be National Living Wage. This would be standard for most umbrella companies, especially if the employee wishes to opt out, as this money would be taken and would then have to be refunded.

    As for the increased contribution, this would be dependent on the umbrella company. With CU an employee can make the contribution they wish into our pension scheme as long as we NET national minimum wage in their pay packet and they do not put away more than 40k for the year.

    HTH
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

    Connect with me on LinkedIn

  3. #3

    Fingers like lightning

    saptastic's Avatar
    Join Date
    Sep 2007
    Location
    Sixth Form
    Posts
    583
    Thanks (Given)
    24
    Thanks (Received)
    21
    Likes (Given)
    36
    Likes (Received)
    57

    Default

    Not sure if it is related to qualified earnings ?

    https://www.nestpensions.org.uk/sche...-earnings.html
    i.e. there is an upper limit on your 'salary' that qualifies for a pension.

    As far as I know you can top up your Nest account with additional contributions.....

  4. #4

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    9,110
    Thanks (Given)
    88
    Thanks (Received)
    171
    Likes (Given)
    1148
    Likes (Received)
    519

    Default

    OP- Yep a lot of umbrellas will pay the absolute minimum as required by law i.e. totally pointless and arent interested in doing anythung else.
    Rhyddid i lofnod psychocandy!!!!

  5. #5

    Fingers like lightning

    saptastic's Avatar
    Join Date
    Sep 2007
    Location
    Sixth Form
    Posts
    583
    Thanks (Given)
    24
    Thanks (Received)
    21
    Likes (Given)
    36
    Likes (Received)
    57

    Default

    Quote Originally Posted by psychocandy View Post
    OP- Yep a lot of umbrellas will pay the absolute minimum as required by law i.e. totally pointless and arent interested in doing anythung else.
    Why would they pay higher than the minimum?
    Its not like a traditional employer trying to keep staff happy and loyal.

    Also Most umbrella workers will only want to contribute the minimum.

    They can top up directly themselves.

  6. #6

    Fingers like lightning

    moggy's Avatar
    Join Date
    Mar 2012
    Posts
    943
    Thanks (Given)
    4
    Thanks (Received)
    10
    Likes (Given)
    84
    Likes (Received)
    6

    Default

    Quote Originally Posted by saptastic View Post
    Why would they pay higher than the minimum?
    Its not like a traditional employer trying to keep staff happy and loyal.

    Also Most umbrella workers will only want to contribute the minimum.

    They can top up directly themselves.
    If its an "employer" contribution from the rate billed - then they save the employers NI. Id say that is the best benefit, now they can't really claim expenses.

  7. #7

    Nervous Newbie


    Join Date
    Jul 2017
    Posts
    2
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Thanks all, this has been really helpful, now I completely understand. Shame Giant couldn't come straight out with it themselves.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.