Introducing Parasol employee pension options

What are your pension options as an umbrella employee?

To help people save more for retirement, the Government requires employers to automatically enrol their eligible workers into a pension scheme. This is known as automatic enrolment. This means that we at Parasol are obliged to automatically enrol all employees into a pension scheme. We’ve chosen NEST to provide our auto-enrolment scheme.

As a Parasol employee you will be automatically enrolled into a pension scheme, if you meet the below criteria:

  • you are aged between 22 and State Pension Age;
  • earning over £10,000 a year (£833 a month/£192 a week)*;
  • working, or ordinarily working, in the UK; and
  • not already an active member of the auto-enrolment pension scheme.

*Please note that these amounts are subject to change by the Government (usually in April each year) so please refer to www.gov.uk for the most up to date amounts.

Join our Scottish Widows group pension scheme: We are also pleased to offer all employees the opportunity to join our voluntary Group Personal Pension scheme with Scottish Widows. If any employee does so within the 3 month postponement period and they pay the minimum required contributions, an employee will not be required to be auto-enrolled into the NEST pension scheme.

Please note: the minimum required contributions will be the same for both pension schemes.

Existing Pension Provider: If you already have a private pension before joining Parasol, we can make contributions into your existing pension scheme provided the scheme is able to accept employer’s contributions. You will benefit from a reduction in employees NI and PAYE tax. We will also pass on the savings in employer’s national insurance.

What next?

If you’d like to find out more about the pension options available to you as a Parasol employee then please contact our employee support team on 01925 644 860.

As an employee of Parasol if we don’t hear from you, then you will be automatically enrolled into the NEST pension scheme if you meet the criteria mentioned above.

Frequently Asked Pension Questions

Do you offer a salary sacrifice scheme?

Parasol can make an employer’s contribution into a pension scheme of your choice. This will operate in the same way as a salary sacrifice scheme i.e. you will benefit from the employees NI and PAYE tax relief and we will pass on the Employers NI savings also.

Can I continue to pay into a pension I have with another provider? Can I continue paying into a SIPP? Can I continue paying into my previous employers pension?

Yes, as long as the pension provider will accept payments from Parasol we can make contributions on your behalf. You will need to contact your pension provider and confirm that your pension is set up to take contributions from an employer. If this is the case your pension provider will be able to advise you on the next steps.

What if my pension provider will not accept employers contributions?

We will still pay into your pension however this will be classed as an employee contribution and so will be paid out of your net pay figure. This will mean that there will be no tax relief or employers/employees NI relief applied at source. However, your pension provider will apply the tax relief for you.

You may wish to consider setting up a pension scheme that will allow employers contributions.  We do offer a group pension scheme with Scottish Widows which would mean you would benefit from Er’s NI, Ee’S and tax relief.

How do I move my existing pension over?

There is no need to move your pension unless you wish to. Your pension will remain with your existing provider, and Parasol will make contributions on your behalf as your employer.

How do I set up with Parasol to pay into my pension?

You will need to contact your pension provider who will be able to advise you how to do this. If you do not currently have a pension we can put you in touch with Scottish Widows and you can join our group pension scheme. This operates in the same way as a salary sacrifice pension.

How much can I pay into my pension?

You can choose the amount you would like to pay however we need to ensure you are paid at least minimum wage.