Elaine writes:
From this April, you have to pay more into your pension.
Your payslip will show more money going into your workplace pension after 6 April 2019.
The minimum amount which you and VGC pay went up last April and is now going up again. This will help to build your pension for your future.
Minimum pension contributions from April 2019
The table below shows the increases as set out by law.
| Employer contribution | Staff minimum contribution | Total minimum contribution | |
|---|---|---|---|
| up to 5 April 2018 | 1% | 1% | 2% |
| 6 April 2018 to 5 April 2019 | 2% | 3% | 5% |
| 6 April 2019 onwards | 3% | 5% | 8% |
You will get tax relief on money paid into your pension.
Do I have to do anything?
You do not need to take any action. VGC will automatically increase the contributions through our payroll software. Any increases will be seen in your payslip from 6 April onwards.
You can opt out if you really want to, but that means you will lose out on pension contributions from VGC and also from the government. The state pension will not give very much money, so staying in will help you to have a good pension when you retire.
You can choose to pay more money into your pension, as a tax-efficient way to save. If you already pay more than the new minimum, you will not need to pay any more.
For more information
If you have questions, talk to your labour manager, or email payroll@vgcgroup.co.uk (site staff) or contact HR manager Laura Perry (office staff).
But please be aware that we cannot advise you how to operate your pension.
If you wish to discuss anything about your own pension, please contact the pension provider directly.
Site-based staff: The People’s Pension – phone 0300 200 555 or visit their website https://thepeoplepension.co.uk
Office-based staff: Standard Life – phone 0345 606 0093 or visit their website https://www.standardlife.co.uk/c1/contact-us.page
Background to the increase
The government introduced automatic enrolment in 2012 to help people to get the retirement they want. Since then, millions of people and their employers have begun saving into a workplace pension scheme.
Your pension is an easy way to help you save for your future. The earlier you start to save, the more money you will have when you come to retire, because your money has time to grow.
For more information about the benefits of a pension please see the Department for Work and Pensions website.
