partnership pension account
How much does it cost?
What will my employer pay?
Your employer will contribute as a percentage of your pensionable earnings. This varies according to your age as at the beginning of the tax year (that is, as at the last 6 April) and so it may increase in the future.
Percentage of pensionable earnings contributed by your employer
| Employer contributions |
|---|
| Age at the last 6 April | Percentage of your pensionable earnings |
|---|
| Under 21 |
3 |
|---|
| 21 to 25 |
4.5 |
|---|
| 26 to 30 |
6.5 |
|---|
| 31 to 35 |
8 |
|---|
| 36 to 40 |
10 |
|---|
| 41 to 45 |
11.5 |
|---|
| 46 or over |
12.5 |
|---|
On top of this, your employer will match any regular contributions you choose to make, up to an additional 3% of your pensionable earnings. The ready reckoner will help you find out the total amount that will be paid into your partnership account for different ages, pensionable earnings and contribution levels. If you do not have Microsoft Excel on your computer, you will not be able to use the ready reckoner
How much should I pay?
You decide how much you want to contribute – you do not have to contribute anything. But remember that your employer will match your contributions up to a further 3% of your pensionable earnings. Your contributions will be based on your pensionable earnings in addition to their age-related contribution for you. Your contributions will be based on your pensionable earnings, so if you are receiving reduced pay, you will only pay contributions on the pay you actually receive.
How much am I allowed to pay?
There is no limit on the amount you contribute to your partnership pension account, but all pension contributions are subject to the Annual Allowance
Do I get tax relief?
Your employer’s contributions are based on your pay before tax (your gross pay), however your own contributions are taken from you after you have paid tax. You pay a reduced contribution that takes account of the tax relief, which the pension provider will claim back on your behalf and will add to your fund.
You will be responsible for paying the tax on any pension contributions over the Annual Allowance.
How do I make my payments?
Your employer will take regular contributions from your pay and pay it over to the provider. We ask all employers to aim to make payments as soon as possible after your pay date. You can also choose to contribute from your bank account by direct debit, but your employer will not pay matching contributions on any payments that are not made through the payroll.
