I work at ICI, and they are asking us to change our pension contributions. This is to save us and them money on our national insurance contributions. We have to "opt-out" before 24th Febuary 2006. Is this a good idea or bad idea to join? I'm 43 and worked there for 23 years.

The scheme is called Pensave.

Any comments?

R.

Rustig wrote:I work at ICI, and they are asking us to change our pension contributions. This is to save us and them money on our national insurance contributions. We have to "opt-out" before 24th Febuary 2006. Is this a good idea or bad idea to join? I'm 43 and worked there for 23 years.

The scheme is called Pensave.

Any comments?

R.

The words opt out and save them money imply you will LOSE !

Basically your saying they want to put less of their money into your pension pot by asking you to opt out of the fund - DON'T DO IT !

It would help if you posted more information on exactly what they intend to do, as likely they are putting in a larger amount into your pension pot then you do ! So by opting out they save a LOT of money which you would have gone into your pension fund !

So no don't opt out OR reduce contributions !


I found the following link which may give you more information on the ICI pension fund.. I draw your attention to the table (Figure 1)

http://www.pensionsatwork.gov.uk/casest ... ny/ici.htm

Thanks Phillipa.

It's a final salary pension. They want use to agree to stop contributions and take a "salary sacrifice" so that we are paying less NIC for use and them.

www.icipensave.co.uk

It seems okay, they did say that the Civil services currently do this. If it's good enough for the Inland Revenue then it's okay by me...

R

Still a bit puzzled.. oh well if you understand it then its okay

Heres what I found on salary sacrifice -

What is a salary sacrifice?A salary sacrifice happens when an employee gives up the right to receive part of the cash pay due under his or her contract of employment. Usually the sacrifice is made in return for the employer’s agreement to provide the employee with some form of non-cash benefit. The “sacrifice” is achieved by varying the employee’s terms and conditions of employment relating to pay.