Death in service benefit

[Alfie]

I am looking for a new job, moving from a very good position where I have worked for many years. I have already had offers, and am seriously considering taking one.

They offered a 10% increase on what I am on and potential profit share associateship in 12 months, but one week less holidays. However, this offer would only contribute pension after six months at 7.5% salary - is this normal? It is a major issue for me - especially death in service benefit, and I would be talking to htem about these issues.

In general, however, if you start with a new company, is death in service benefit standard for most pension schemes?

I have a young family, and where I work at present, I have a defined benefit pension and death in service benefit of 4 times annual salary.

Would any probation period affect this?

 

[ClubMan]

potential profit share associateship in 12 months

How "potential"? If the offer is not copperfastened by a clear legally binding agreement then all bets are off.

but one week less holidays.

One week less than what?

However, this offer would only contribute pension after six months at 7.5% salary - is this normal?

In my experience some employers do this and only start making employer contributions on behalf of the employee after some period (the probationary period perhaps) has been completed. On the other hand sometimes they will contribute immediately for those transferring in an existing occupational pension fund.

In general, however, if you start with a new company, is death in service benefit standard for most pension schemes?

It varies in my experience. Some do, some don't, some employers cover the cost, others take some of the "pension" contribution to buy such life cover.

I have a young family, and where I work at present, I have a defined benefit pension and death in service benefit of 4 times annual salary. Would any probation period affect this?

Affect what - your old DB pension?

Have you sought independent, professional advice on the implications for your DB fund of moving? Not saying that you should not move because of your DB fund but you do need to understand the implications.

 

[gramlab]

As far as I know the contributions before you are there for 6 months(presumably a probationary period) are held back but will be added to your contributions if you are still in the job after the 6 month period. Was the situation for a previous job I had.Check this out.

 

[ClubMan]

As far as I know the contributions before you are there for 6 months(presumably a probationary period) are held back but will be added to your contributions if you are still in the job after the 6 month period. Was the situation for a previous job I had.Check this out.

I don't think that this necessarily applies generally. One employment that I was is did not make employer contributions on behalf of an employee until the 6 month probationary period had been completed - and they did not backdate contributions for the first 6 months either - unless the employee was transferring in from another occupational pension scheme.

 

[slave1]

our DIS benefit is 4 times for a single person, 8 times for a married person
pension is defined benefit, 6.75% ee contribution