Without wishing to add to the confusion in this case, an employer cannot operate an occupational pension scheme based solely on employee contributions. Where an occupational pension scheme exists (not a PRSA), the employer is obliged to contribute a minimum of 10% of the total contribution.
So if the employee is contributing 2.5% of salary, then the employer must contribute at least o.3% (approx) i.e. 10% of 2.8%.
The only way that the emlpoyee can be contributing on his own (no employer contribution) is though a PRSA facility (where all the employer is doing is facilitating the deduction of contributions from salary, remitting them to the chosen PRSA provider and thus ensuring that the employee is getting tax relief under the "net pay" system).
Hal 2001, I suggest you clarify with the pension provider exactly how the pension plan is structured, who is contributing what, how its invested and what is the charging structure. From reading the mails so far, I am still unclear as to exactly what you have.
So if the employee is contributing 2.5% of salary, then the employer must contribute at least o.3% (approx) i.e. 10% of 2.8%.
The only way that the emlpoyee can be contributing on his own (no employer contribution) is though a PRSA facility (where all the employer is doing is facilitating the deduction of contributions from salary, remitting them to the chosen PRSA provider and thus ensuring that the employee is getting tax relief under the "net pay" system).
Hal 2001, I suggest you clarify with the pension provider exactly how the pension plan is structured, who is contributing what, how its invested and what is the charging structure. From reading the mails so far, I am still unclear as to exactly what you have.