Reply to: Format of letter for Pension Advisory Service

[SueEllen]

In order for your employee to opt out, you need to have a pension scheme for them to opt out of.

Look at NEST - AIUI it costs nothing to set up a scheme for them to opt out of.

https://www.nestpensions.org.uk/schemeweb/nest.html

But you presume the employee wants to opt out.

The whole point of this is that they won't be bothered especially when they realise it is effectively a pay rise.

[washed up contractor]

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

Yea I can google stuff too, was just looking for a pre drafted letter...

But hey ho

[SueEllen]

Tell me more about officer in this context

The pension link gives a basic description of the different types of a director a company can have.

You need to remember directors have legal duties regardless, but also don't have to be:
1. A shareholder of the company
2. An employee of the company
3. A worker of the company
4. Be the signatory for the company bank account(s)
5. Get any payment at all from the company

Most people have who have non-working spouse make them a director and pay them a small salary due to the help and advice they provide. They also make them a shareholder - though as I pointed out above you don't have to. The pension issue for such non-fee earning directors is complex, there are threads on that topic, but as you are exempt from auto-enrolment it is left to you to sort out.

If you are paying your wife anyway to do some work then it makes sense to make her a director. Talk to your accountant about this but it is really easy to add another director. (If they aren't a shareholder it is easy to remove them as well though if you are married there is no reason to.)

[mudskipper]

In order for your employee to opt out, you need to have a pension scheme for them to opt out of.

Look at NEST - AIUI it costs nothing to set up a scheme for them to opt out of.

https://www.nestpensions.org.uk/schemeweb/nest.html

[northernladuk]

Can't your accountant handle it?

[CoolCat]

Tell me more about officer in this context

[SueEllen]

not an officer no

Shame as it would have made life really easy for you as then you would have no employees who you required a scheme for.

linky

Remember no need to be a shareholder or actually do more than what she is already doing.

[CoolCat]

Be careful -



This thread could be used in your divorce.

BTW is your wife an officer of the company?

not an officer no

and yep I plan to be careful

thats why I am asking everyone else, someone must have ticked this box by now?

[SueEllen]

I repeat...

what is the right statutory format then?

can my ltd and the missus agree this between themselves, or do we need to go through the rigmarole of getting her invited into a pension only to reject it? as would seem the case from the official pension advisory service website...

Be careful -

Your client must not actively encourage their staff to opt out of their workplace pension (which could be considered an ‘inducement’). Any decision to opt out must be taken freely by the staff member without influence from the employer.

This thread could be used in your divorce.

BTW is your wife an officer of the company?

[CoolCat]

I repeat...

what is the right statutory format then?

can my ltd and the missus agree this between themselves, or do we need to go through the rigmarole of getting her invited into a pension only to reject it? as would seem the case from the official pension advisory service website...

[WTFH]

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

Yea I can google stuff too, was just looking for a pre drafted letter...

But hey ho

Your pension is irrelevant to a PAYE employee of your company. They must have a pension or have opted out.
The fact that you have your own pension set up to look after your wife has nothing to do with a pension for a PAYE employee.

The rights of a PAYE employee are not nonsense.

[northernladuk]

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

Yea I can google stuff too, was just looking for a pre drafted letter...

But hey ho

Here you go. Might need to changing the names etc.

[CoolCat]

so what is the right statutory format then?

can my ltd and the missus agree this between themselves, or do we need to go through the rigmarole of getting her invited into a pension only to reject it? as would seem the case from the official pension advisory service website...

[SueEllen]

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

And the Pensions Regulator will know this how?

The letter is just a standard one they send out to every company using the limit data they receive. It is up to you to send them information using the right statutory format which tells them to bog off.

[CoolCat]

It's not a load of nonsense, it's the law for anyone who is PAYE.

Anyway, a few seconds on Google reveals this:

Opting out | The Pensions Regulator

I beg to differ it is nonsense precisely for the reason I stated, that my pension is setup perfectly to look after her without her needing to have a separate pension.

Yea I can google stuff too, was just looking for a pre drafted letter...

But hey ho