Pension contribution % at IB vs hedge funds

[ContractorBanking]

I just took a role back in London now. Financial services. Salary is high as perm but pension is 3% from employer!

Wow, 3% is paltry.

Out of interest, what’s the lowest % the employer is obliged to contribute?

[eek]

Wow, 3% is paltry.

Out of interest, what’s the lowest % the employer is obliged to contribute?

3%

[jatinder]

It's also quite common for the pension contribution percentage (say 10%) to be based on a "pensionable" salary than your "actual" salary.

eg. (from memory) At UBS, the max pensionable salary was £100K when I was permie there.

--Jatinder

[NowPermOutsideUK]

Happy Friday fellow contractors

Could I please ask your advice and hope I do not get flamed on the following

I have started back in the UK on PAYE perm. I want to pay into my pension to reduce my tax - I think I have two options
1) Have the payroll deduct the amount from my payslip and enroll into the group pension (The employer wont contribute anything extra if I do that including the NI that they save)

2) Make a pension contribution myself at year end and recover the tax saving by self assessment which I am required to submit each year.


What is the difference between (1) and (2) from the employee (ie my point of view) - I remember eek saying something along the lines of if I did (1) then the NI the employee paid would also be reduced but I cannot find that thread and I am not sure if that is the case

For arguments sake suppose I make a 30K pension contribution through option (1) or option (2) - What would thenet difference be if any?!

Happy Friday

[TheDude]

I know of another investment management firm that makes a 16% monthly contribution and matches these contributions up to 2% as well as make an additional contribution equal to 10% of the monthly amount you pay. So if you paid 2% of your salary into your pension each month, you’d receive a contribution from the company of 18.2% on top of that.

Do they pay a relatively low salary (on which pension is based) and the the rest as non discretionary bonus?