Even though there are several types of occupational pension schemes in the UK, on the default banded earnings scheme set up via Kota, you'll be normally contributing 5% of your salary, while your employer will pay 3%. This is because banded earnings have these two requirements:
your employer must always contribute 3%, minimum
the sum of your employer and your contributions should be 8%, minimum
This means, for instance, that, with banded earnings, you can reduce and contribute with 4%, but only if your employer contributes with another 4%, so in total it makes up 8%. On the other hand, you might also contribute more than 5%, even if your employer wants to stick their contribution at 3%.
Despite the two requirements listed above, this is thus a flexible arrangement between your employer and you. When you log in to Kota's mobile app, you'll be able to check the exact contribution percentages to your pension scheme.
If you'd like to change your contribution percentage, simply open Kota's mobile app, select the Smart Pension Master Trust section and then tap on the 'Change contribution' button. You'll be able to increase or decrease your contribution percentage, as long as the total sum of contributions between you and your employer makes 8%.
Other types of pensionable earnings can be applied to a pension scheme aside from banded earnings, such as unbanded earnings or self-certification tiers. If your employer has opted for one of these other pensionable earnings types, and you'd like to make changes to your contributions, please contact us via chat or email ([email protected]).