Employer letter to employee regarding 6th April 2018 pension contribution increases

Dear colleague

Helping you to save more for your retirement

To help you with planning for your retirement, we run the workplace pension scheme through Welplan Pensions. The pension scheme provides you with your own pension pot for when you retire and is yours to keep, even if you leave to work for another employer. Each payday both you and we as your employer, pay money into your ‘pension pot’.

It is unlikely that you will have sufficient income from just your state pension alone to meet your retirement needs and so your pension pot with Welplan Pensions may help towards meeting any potential shortfall in retirement income as it is in addition to your state pension. Through our joint contributions to Welplan Pensions you give yourself a better chance to enjoy a more comfortable and enjoyable retirement.

However, based on just the current minimum contributions, would you have enough for retirement? The government is also keen to see that you make adequate provision for retirement and so they have said that we must pay more into your pension pot with effect from 6th April 2018.

Your contributions will also help you save more for your retirement

When we pay into your pot you also pay in to ensure that between us, we cover the overall total minimum contribution required. The government also helps you by topping your pot up because if you pay income tax, they provide tax relief on your contributions at your highest rate and do not tax you on the employer contributions either. This all helps hopefully towards the possibility of growing your pension pot that much sooner.

How much will the minimum contributions be?

Date / Employer Contribution / Employee Contribution
6th April 2018 to 5th April 2019 / 2% of qualifying earnings / 3% of qualifying earnings

EMPLOYER – PLEASE ALTER ACCORDINGLY ABOVE AND DELETE ALL THIS THIS RED PRINT WHEN YOU HAVE READ IT AND IMPLEMENTED ITS INSTRUCTIONS APPROPRIATELY – NOTE, THE ABOVE IS BASED ON ‘QUALIFYING EARNINGS’ AND ASSUMES THE EMPLOYEE IS ALSO CONTRIBUTING THE MINIMUM AMOUNT. PLEASE CHANGE TO 3% (employer) AND 3% (employee) RESPECTIVELY IF FOR EXAMPLE USING BASIC PAY AS PENSIONABLE EARNINGS. PLEASE CHECK THE PENSION REGULATORS WEBSITE IF YOU ARE UNSURE OF THE NEW RATES.

Please note that if you stop paying into your pot or reduce the contributions to below the government’s statutory minimum, our contributions may also stop.

Do I have to do anything?

You don’t need to do anything as we will do it all for you. We will automatically adjust both the amounts we contribute and those we deduct from your pay from 6 April 2018.

Can I pay more into my pension pot to help me get a bigger pension?

Yes. Just let us know if you want to increase your contributions and we will arrange it for you. In addition, although you may wish to consider independent financial advice as Welplan cannot advise you to do so, you can also transfer in to Welplan Pensions other pension pots you may have elsewhere. Please see Welplan’s website for further information at

REMEMBER – THE GOVERNMENT WOULD LIKE YOU TO PAY MORE THAN THE MINIMUM CONTRIBUTIONS MENTIONED INTO YOUR PENSION POT IF YOU CAN AFFORD IT, TO GIVE YOU A MUCH BETTER CHANCE IN RETIREMENT.

Any questions?

If you have any questions please contact me at (employer - please add your contact details)

Yours sincerely

[Name]

[Job title]