Pensions & Redundancy

D

DELLBOY 08

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If a PAYE employee has been paying into a defined contribution pension scheme for less than 2 yrs is the employer still entitled to reclaim their contribution if they make the employee redundant?
 
The short answer is YES. If seems a bit unfair, but pensions legislation does not require redundant employees to be treated more favourably than employees who leave of their own accord.

However, sometimes scheme rules specify that normal vesting requirements will be waived on redundancy or employers may decide to voluntarily allow redundant employees to keep entitlement to the company contributions. But I wouldn't count on it - particularly if the company is in financial difficulties.

Homer
 
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