The Pension Regulator TPR have issued both added and new guidance for employers on pension obligation and salary sacrifice implications for employees who have been furloughed.
Salary sacrifice pension and furlough
The TPR explain the implications of salary sacrifice pension arrangements for employees and their grant based furlough pay.
The requirements of the Coronavirus Job Retention Scheme Grant is that the full grant must be paid.. Benefit provision and salary sacrifice reductions cannot be applied.. Employee standard contributions can be deducted.
Where a salary sacrifice arrangement is in place for pensions, an employer will need.. to calculate the pension contribution to be paid to the pension scheme under the pension scheme rules..
The TPR provide detailed guidance with examples:
Employers need to ensure that they meet the requirements of CJRS and continue to comply with Pension agreements and law.
PAYadvice have covered the implications of salary sacrifice and furlough within the following article: