Employer Group Pension Scheme - employer contribution cut

[joker77]

Hi - I have a few questions on an employer group pension scheme question - I'm not sure if they are more relevant here or in the employment forum (mods can advise?)

If the employee has a contract of employment which stipulates that the employer will pay 5% of salary into the pension - what is the situation if the employer cuts this contribution?

I'd assumed this was perfectly reasonable for the employer to do, but would this need an amended contract?

The reason given was the economic situation. Some people had pay cuts. Others were unaffected, and their employer contribution of 5% (or more) was left untouched.

It's a private group scheme, 2 of the company directors and their pension advisor are the trustees.

Thanks

 

[punter]

This is like any change to Employment Terms; it is a change to your contract of employment and must be agreed. You would be best advised on this by someone familiar with employment law (HR, Trade union, employment law specialists).

In my experience, where the circumstances dictate change, there isn't much that can't be changed, however what does appear unusual in your case is that the changes were unevenly distributed. ("Some people had pay cuts. Others were unaffected, and their employer contribution of 5% (or more) was left untouched.") This may be worthy of further investigation.

 

[joker77]

Thanks for the reply. As you say it's probably best to follow up with an employment law specialist