Enhance: Construction Pension Scene, Northern Ireland

Enhance

Current Employers

Pension Contributions

Employer contributions

The employer pays a weekly pension contribution based on normal weekly pay before tax and after National Insurance contributions (NIC).

From 5 December 2016 employer contributions are either £10.24 per employee per week or 4% of normal weekly pay (whichever is higher).

The employer also makes a contribution of £1.76 per employee per week towards lump sum death in service cover for each employee.

Employee contributions

The employee pays weekly pension contributions only.

The employer deducts the employee contribution from normal weekly pay before tax and after NIC.

The minimum level of pension contribution due to the Scheme will increase as shown in the table below:

Date of Introduction December 2011 December 2012 December 2013 December 2014 December 2016
Employer Contributions 1% 2% 3% 3% 4%
Employee Contributions 1.2% 1.6% 2.4% 3.2% 4%
Employee Tax Relief 0.3% 0.4% 0.6% 0.8% 1%
Total Contribution 2.5% 4% 6% 7% 9%

Employees receive tax relief on their contributions. Some examples of the cost to employees, assuming basic rate tax of 20%, are as follows:

Weekly qualifying earningsEmployer deducts 5% from normal weekly pay (before tax)Tax ReliefEmployee Net contribution
£250 £12.50 £2.50 £10.00
£350 £17.50 £3.50 £14.00
£400 £20.00 £4.00 £16.00

Contributions will be kept under review by the Joint Council and adjusted as necessary to ensure compliance with auto-enrolment requirements.

Additional Voluntary Contributions

Additional Voluntary Contributions (AVCs for short) allow employees to make better provision for their retirement by purchasing extra pension. Members may contribute more than the minimum employee percentages detailed above. If any of your employees are interested in paying AVCs, please download an AVC Form for them to complete and pass to you.

Changes from 5 December 2016

The Joint Council for the Building & Civil Engineering Industry has agreed that from 5 December 2016 employees who do not contribute to the Enhance pension scheme will no longer receive an employer contribution. Detailed guidance on the payment of employer and employee contributions from 5 December 2016 is available here.