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 Help is always just a phone call away, whether you require an urgent answer to a question over the phone or a visit from a member of staff to discuss the Scheme in detail.
We are here for the benefit of our members, as such staff will always be available to answer questions, whether by phone or by email, from employers or employees. We also have our Business Development Executive who could visit your office to discuss the Scheme in general or to answer any specific questions. We will also be happy to present the benefits of the Scheme to your Board of Directors or explain how the Scheme operates to your staff.
^ Back to Penny's Questions
The following table illustrates the cost and benefits under both arrangements in order that you can assess where the “value for money” option lies:
| |
7.5% gross
(est 3.5% net) |
3% |
| Nil |
1.8% deducted from all contributions before investing
0.3% management charge deducted from value of fund annually |
annual pension equal to 1/80th average salary for each year of service, plus bonuses
maximum 25% of the value of pension can be exchanged in return for a tax free cash lump sum |
fund value at date of retirementto purchase pension
maximum 25% of fund value can be taken as tax free cash |
lump sum 2 x pensionable earnings
plus pension for spouse/partner
plus pension to dependants under 18 years of age
pension to spouse partner equal to 50% members pension |
return of fund value
nil (unless purchased at retirement by reducing members pension) |
| over 35 years experience,full personal support from Admin staff. This will include company visits if required |
not known - new arrangement |
Unlike many other schemes members of Plumbing Pensions will have a good idea in advance what benefits they are likely to receive on retirement. Employees are also secure in the knowledge that should anything happen to them their family will be catered for.
^ Back to Penny's Questions
Simplicity is key to our processes, we offer a straightforward
administration procedure in setting up and thereafter:
 In order to set your company up as a participating employer, you need to complete two forms and issue a notice to your employees.
- Deed of Adherence - this confirms your Scheme participation and agreement to adhere to the terms of the Scheme.
- Form of Election to Contract-Out of the State Second Pension Scheme (S2P) - this is required by HMRC to issue you with a Contracting-Out Certificate.
- Notice of Intention to Contract-Out of S2P - to be issued to your employees.
The forms are pre-populated as much as possible and guidance is provided for the few sections you have to complete.
Thereafter, you simply need to arrange for pension deductions to be made through your payroll system. Finally, employee and employer contributions are remitted to the Scheme each month in line with PAYE to reach us by the 19th of the following month.
Our Administration team will be on hand to support you throughout this simple process and will work with you to ensure that you find the most efficient methods for the deduction and payment of pension contributions.
^ Back to Penny's Questions
That is one of the big advantages of our Scheme - we can offer a higher level of benefits at an employer’s discretion.
In addition to the basic level of contributions payable, three Higher Benefit scales are available, each of which accrue a higher level of benefits.
Although membership at one of the higher benefit scales is intended for Directors of limited companies, managers and other senior employees, there is no restriction and any employee can contribute at a higher level should their employer agree.
A table illustrating the various contribution rates and benefit levels is detailed for information:
| 3.75% |
7.50% |
1.25% (1/80th) |
2 x pensionable earnings |
| 5.25% |
10.50% |
1.5% (1/66th) |
3 x pensionable earnings |
| 6.25% |
12.50% |
1.75% (1/57th) |
3.5 x pensionable earnings |
| 7.25% |
14.50% |
2.00% (1/50th) |
4 x pensionable earnings |
^ Back to Penny's Questions
 The cost to employers of participating in the Scheme is very close to that required under auto-enrolment.
The basic contribution rate for an employer is 7.5% of earnings however, as the Scheme is currently contracted-out of the State Second Pension Scheme there is a saving on National Insurance payable and this together with tax relief on paid contributions means that the net contribution rate is reduced to a figure around 3.5% of earnings.
^ Back to Penny's Questions |
