3.5.12 Employer contributions to partnership pension accounts come in three parts:

  • You pay an age-related contribution, based on the employee’s age at the beginning of the current tax year (6 April last). You pay this regardless of whether or not the employee chooses to contribute. See the Employer Contributions Rates for the age-related contribution rates. 
  • You match the employee’s gross contribution up to a maximum of 3%. 
  • You must also pay a mini ASLC of 0.5% of pensionable earnings to cover the cost of risk benefits as a result of death-in-service or ill health retirement. You pay this mini ASLC to Cabinet Office Civil Superannuation Vote by using any one of the methods detailed in Annex 3A. You must also complete the ‘partnership’ box on the breakdown report (see Annex 3B) and send it to the Scheme Manager as soon as you make the payment.

3.5.13 In some cases, you may want to pay a higher contribution than the standard age-related rate. You can do this as long as you can justify that it is necessary to recruit or keep the member. You must report these cases to the Scheme Manager.

3.5.14 partnership contribution percentages could change in the future.

3.5.15 You calculate the age-related contributions using gross pay. You must take care when working out matching contributions, as the aim is to match on a gross basis. This means that the amount the employee pays to the provider and your matching contributions are not in fact the same.

3.5.16 You only pay matching contributions to match the employee’s regular contributions. If an employee decides to make a one-off lump sum contribution, you will not have to pay a matching contribution. An employee can make an additional lump sum payment through payroll or directly to the provider.

Published:
21 December 2021
Last updated:
27 January 2022