"Employer" contribution to company pension

[kramer2006]

Hi all,

Hypothetically speaking, if you are a company director with a company pension plan, are there any limits on the extent of contributions the company can make?

I understand there are restrictions on the "employee" portion of the contribution, but I have read conflicting information regarding the "employer" contribution.

Can anyone shed any light on this?

Many thanks.
K.

 

[LDFerguson]

There are limits but they are generous. Here's a broad explanation - if you have 20 years service at retirement, you can get a pension of up to 2/3 your final salary, with 100% pension for your spouse, guaranteed minimum payment periods and escalation on your pensions in payment.

Your company can put in as much into your pension as would be reasonably expected not to provide a bigger pension at retirement than this.

Liam D. Ferguson
www.ferga.com