A contribution model is a structure that defines how much the contributions to your workplace pension will be. It sets out what percentages of pensionable earnings – the pay used to work out pension contributions – the workplace and workers should each pay.
The contribution models we support range from a simple model that meets the minimum legal requirements, to more complicated models that include matching contributions.
Standard
The system will work out the contribution rates at the minimum level required by law, whichever pensionable earnings basis you choose. The rates are fixed. You can’t edit them.
Custom
The system will start by working out the contribution rates at the minimum level required by law, whichever pensionable earnings basis you choose. As long as you continue to meet the minimum level, you can edit the model by setting the worker and workplace contribution rates to the values you want.
The system will expect contributions for all eligible workers based on the model. If you want to change the rates in future, you’ll need to edit the model.
Matching
Again, the system will start by working out the contribution rates at the minimum level required by law, whichever pensionable earnings basis you choose.
Edit the model to set the worker contribution rate. You also need to set a maximum workplace contribution rate. Again, you need to continue to meet the minimum level required by law. The system will automatically set a workplace rate equal to the worker rate, up to the maximum you’ve set.
The system will expect contributions for all eligible workers based on the model. If you want to change the rates in future, you’ll need to edit the model. When you change your worker contribution rate, the system will automatically set the workplace rate equal to the new worker rate, up to the maximum you’ve set.
