Workplace Pension: Do you need to consult employees on contribution changes?

Ryan Oates, Corporate Financial Adviser, SG Corporate Services says

“Changing a pension scheme’s rules or terms and conditions to increase member contributions normally requires employers to consult with the scheme members.“

Consultation is only necessary if:

• An employer has 50 or more employees, which is determined by calculating the average number of employees in the previous 12 months.
• An employer wishes to amend the scheme rules to increase member contributions at a different time or rate than originally set out.
• The consultation period must not be less than 60 days.

However, where the scheme rules are already set to increase contributions to the minimum levels, either in April 2018 and 2019 or earlier, the employer will not need to consult members. You should still notify them that increased contributions are due to be taken.

If the change is being made to ensure the scheme remains qualifying - that the rules or terms and conditions are being amended purely to reflect the minimum increases set out in law - the employer will not need to consult.”

Further information can be found here: