If you are using salary sacrifice in relation to your pension contributions
This means that where an employee is receiving furlough grant only the full pension payments will be an employer cost.
Practically, it will be necessary to work out the notional pre-sacrifice pay by treating the furlough pay as your worker’s post-sacrifice amount. You can then calculate the total employer pension contribution as normal based on the notional salary calculation.
Where you top up the worker’s payment to above the level of the furlough grant then salary sacrifice payments can continue to be deducted based on the actual pay figure (grant plus top up) provided that the dedication will not take actual pay below the furlough grant.
You can find more information by visiting The Pensions Regulators website
How will this be shown on the pension schedule?
Workers that have been furloughed will be shown in a separate furlough category on the schedule.
Our schedule will clearly show the key information to will need; notional pre-sacrifice salary, any deductions to be made from the member’s salary and total employer contributions to be paid.
There are no additional fees for utilising this functionality from the current pay reference period onwards.
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