What are Pension Filings and what are the rules around it?

The amount an employer and their staff members pay into employee pension schemes may vary depending on which pension scheme you choose. However, by law, an employer and their staff must pay a minimum amount into their scheme.

The employer must pay at least 3% of their staff member’s earnings, whereas the staff member must pay a minimum of 5% of their own earnings, 4% being their own contribution and the remaining 1% being contributed by HMRC.

When a staff member pays into their pension scheme, you need to know what staff earnings to use in calculating their pension and the calculation used to acquire the pension sum.

From their monthly earnings you deduct £520, the sum leftover is then used to calculate the pension the staff member and employer must pay.

Employers should provide information of any changes to a staff member’s earnings or their contribution rate; or any requests to join or leave the pension scheme, to the pension scheme provider.

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