Pension consolidation means combining all (or most) of your pension pots into one. Over your career you may work for many different employers, and so may build up quite a collection of different pension pots and/or pension schemes. You might also have personal pensions, especially if you’d spent time self-employed.

Does your company have to match your pension?

No. An employer doesn’t have to match employee contributions. Currently, the minimum contribution is 5% of qualifying earnings, of which at least 2% must be paid by the employer.

Can a company have two pension schemes?

Employers must ensure that their pensions schemes comply with auto-enrolment rules, which may lead some organisations to run multiple schemes for the workforce. Using multiple pension schemes will not suit all employers. Running multiple schemes can be confusing and may increase communication costs.

What happens to your pension if your company is bought out?

When a company establishes a pension plan, the plan itself is a legal entity. When one company acquires another, the plan’s obligation to pay you the full amount of your vested benefits remains the same, whether the plan stays as part of the old company or becomes part of the new company.

Is it better to combine pension pots?

Consider bringing pension pots together If you have several pension pots, there are potential advantages if you combine them into one. If you combine them, you: can keep track of, and manage, your pension savings more easily. might save money if you can move from a higher-cost scheme to a lower-cost one.

Is combining pensions a good idea?

If you have lots of pension pots, consolidating them into one scheme can remove the hassle and paperwork of managing lots of different plans. Merging your pots together could also reduce your fees and give you access to a wider range of investments.

Can You backdate a company pension contribution?

Basically the company made a good profit in the year to June 2018 and the client is asking can they put through (accrue) a pension contribution now and include it in the June 2018 Accounts to reduce the 2018 taxable profit.

How to trace a pension in the UK?

The Pension Tracing Service will only tell you the contact details of the pension’s administrator. You will then need to contact the pension administrator to find out whether you have a pension, what value it is and to ask for it to be paid out. For more information call the Age UK Advice Line on 0800 678 1602.

What should I tell my employer when setting up a pension scheme?

When your client sets up their pension scheme, they should tell the scheme provider that they need to backdate contributions. Your client may wish to check if their provider can help them calculate the amounts they need to repay, and tell them what they need to do to make these payments.

How long does it take to set up a pension scheme?

If more than six weeks have passed since your client’s duties start date before they set up a workplace pension scheme, they will need to take certain steps in line with their automatic enrolment duties.