Employer won't contribute to pension

[jayok77]

Hi,

We are trying to negotiate for our employer to provide a pension scheme that they will contribute to (Roughly 40 employees in IT sector business).

They have mentioned all sort of reasons why they wont - too much hastle, not enough manpower to organise, company too young (10 years!) etc.

Has anyone had experience of getting an employer to provide a contributary pension plan?

What points could we put across to highlight the benefits it could have for the company?

Also any other suggestions that could help our case?

Cheers,
Yosarian.

 

[Happy Girl]

Perhaps this previous post I posted might be of use to you. Afraid my employer duidn't go with it as they felt it was equivalent to giving me a pay rise and due to the fact that I am on a pay scale already they said no. But sure if you don't ask, you can't receive.

http://www.askaboutmoney.com/showthread.php?t=50767&highlight=employer

 

[Carpenter]

My employer only set up an occupational scheme in recent years and the company is relatively "young" (10 years). I argued the case for a company scheme for a number of years, especially at my annual review. The benefits to the employees are obvious but for the company it offers the following:

1. Aids staff acquisition/ retention
2. Good for morale.
3. Can be tax efficient for the company in that employers PRSI is not liable on contributions (I have flexibility in my scheme in that some years I opt to have my employer increase their payment into my scheme instead of giving me the annual pay rise).
4. Probably less tangible, but I think a company that offers an occupational scheme has "come of age" as such and is much more likely to get the best from their employees in terms of productivity, loyalty etc.

 

[Brendan Burgess]

The main benefit to your employer is that he won't go to jail! Employers are obliged to make a pension scheme available to employees.

They are not obliged to contribute, but they must register for a PRSA.

Why not print off the Pension Board's Guide to Employers' Obligations and give it to your employer?

[broken link removed]

 

[ClubMan]

If they don't want to contribute on behalf of employees (and it is their right not to) then you could try to convince them that where employees make their own contributions which will be deducted from payroll before any tax/PRSI is deducted then the employer might like to contribute the 10.75% employer PRSI "saving" that they make on these contributions to the fund at no net cost to themselves. I did this in the past and the employer was happy to cooperate.