Works Pensions

Auto Enrolment Works Pensions

  • Automatic free credits towards your auto enrolment works pensions, from first £1 to end of personal tax allowance.


  • Workers start paying on wages after personal tax allowance, but lowered from current 4 to 2 per cent worker auto-enrolment contributions. Keeping 1 per cent tax relief on workers' auto-enrolment works pension contributions.

  • Boss paying his 3 per cent auto-enrolment contributions from first £1 of your wages.


  • Total minimum contribution between boss and worker lowered down to 5 per cent from current 8 per cent.



Background:

2023 The pensions (extension of automatic enrolment) (no. 2) bill was to abolish the lower earnings limit for contributions and reduces the age for being automatically enrolled from 22 to 18 years old.


To apply the mandatory 8 per cent contribution
(boss pays 5 per cent and worker 3 per cent) to earnings
‘from the first pound’ rather than only to those above a lower earnings limit. Affects especially women, young people and lower earners.

Source: https://www.ftadviser.com/pensions/2023/03/28/auto-enrolment-extension-bill-passes-to-lords/


Not now being introduced in 2024-2025 tax year nor age reduced to start from 18 years.

https://www.ftadviser.com/pensions/2024/02/08/auto-enrolment-is-incomplete-says-pensions-minister


..."The research indicates that eliminating the auto-enrolment trigger for individuals earning less than £10,000 has the potential to improve retirement outcomes by 7 to 13 per cent for nearly three million people."...

(from Pensions and Lifetime Savings Association commissioned report by Pensions Policy Institute (PPI))


..."The report, ‘Uncovering the Profile of Low Earners in the UK and the Potential for Pension Saving through
Auto-Enrolment,’ found around one in nine employees, equivalent to 3.17mn people in 2022, meet the age criteria for automatic enrolment but earn less than the trigger income of £10,000 a year."...


Source: Article: August 3, 2023

https://www.ftadviser.com/pensions/2023/08/03/could-removal-of-ae-earnings-trigger-help-more-low-earners-save/



Lower Pension Payment Ages. Helps 1970s born onwards.

• Full works pensions paid from age 50 men and women, for manual workers. 

  • Revert to early works pension payment
    age 50 men and women,
    for all other non-manual jobs. 




BACK TO PRIOR WORKS PENSION SYSTEM 

  • Return to Final Salary works pension system, starting from 1970s and 1980s born.


ILL HEALTH WORKS PENSIONS

• Make ill health early works pension payment easier, for inability to do the job they are employed in, not any job at all. 




HELP PENSIONS DOWNGRADED UNDER FIRE AND REHIRE 
• Reinstate teachers’ pension lost to fire and rehire* (especially in private schools) protecting their jobs when done. 


STATE and WORKS  PENSION AGE 60 
• Full state pension payment age 60 for men and women. 


SAVE TAX 
• End cashing in full your works / private pensions, to protect you from the scammers who’ve thieved entire retirement monies, and also this taxes your pension money more. 

• Keep the tax free up to 25 per cent lump sum of works / private pensions. Remembering the more you cash in, the less you have for monthly money for rest of your life. 

  • Save tax by no longer able to cash in 75 per cent of your works / private pension, and get that percentage as your monthly paid retirement works / private pension for life. 

TAX ON WORKS / PRIVATE PENSION CONTRIBUTIONS

  • Basic rate taxpayers to get 45 per cent works / private pension tax relief. 


  • Higher rate and additional rate taxpayers to get 10 per cent pension tax relief.


YOUR CHOICE WHEN YOU RETIRE

• Keep Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011, so boss cannot sack you once you are receiving your pensions. 



PRIVATE FIRMS GOING BUST AND COMPANY PENSIONS

  • Works pension no longer to be an asset of private company, when it goes bankrupt.

  • Redundancy of workers no longer to come out of National Insurance Fund, but from first call on assets of bankrupt company. 

  • Your works pension fund taken into the Pension Protection Fund, to help fund payment of works pensions of bankrupt private company, to current pensioners and future pensioners.

  • Work towards private firms' works pension to turn into standalone works pension systems.

Related Policies
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