Which pension providers do umbrella companies use?

When you register with an umbrella company, they will enrol you in a workplace pension scheme. Continue reading to find out more about workplace pension schemes and which pension providers umbrella companies use.

What is a workplace pension scheme?

A workplace pension scheme is an easy way to save for retirement. It is a legal requirement for all employers in the UK to provide a workplace pension scheme to their employees – called automatic enrolment. You will automatically be enrolled into a workplace pension scheme if all of the following apply:

• You’re aged between 22 and state pension age
• You earn at least £10,000 per year
• You’re classed as a worker
• You usually or ordinarily work in the UK

When you register with an umbrella company, they will enrol you into their chosen workplace pension scheme. Please note that the pension provider will vary between umbrella companies. Once enrolled in the pension scheme, you will receive a welcome pack that provides essential information about the scheme, pension deductions, and how to opt-out if you do not want to contribute.

If you want to contribute to the pension scheme, the pension deductions are taken automatically each time you are paid and paid into the pension scheme. When enrolling employees into a workplace pension scheme, the minimum contributions set by the government is 8% – split into 5% employee and 3% employer. These are the contribution amounts most umbrella companies will use.

Can I opt out of a workplace pension scheme?

You can opt-out if you do not want to use the umbrella company’s workplace pension scheme. Your umbrella company could enrol you into the workplace pension scheme after your first payment, or they can delay the date they enrol you into the pension scheme by up to three months.

You must wait until you have enrolled in the workplace pension scheme and your first pension contribution has been taken. After this point, if you would like to opt out, you can do so. Please contact the provider if you want to opt out of the workplace pension scheme. Your umbrella company cannot opt-out on your behalf.

Different pension providers have different opt-out periods. An opt-out period is the duration you can opt-out and all contributions you’ve made will be refunded. If you opt-out outside of the opt-out period, you can still opt out and cease membership, but you won’t receive a refund for any contributions made.

If you are an employee of Churchill Knight Umbrella, our chosen pension provider is Smart Pension. If you want to opt-out, please contact Smart Pension after you have been enrolled and your first contribution has been taken. The opt-out period with Smart Pension is one month, and any contributions made within this time will be refunded. You can still opt out outside of the one-month opt-out period, but you won’t receive a refund for your contributions.

Which pension providers do umbrella companies use?

Many umbrella companies use the government’s NEST pension scheme, but the pension provider can vary between companies. If you are interested in contributing to a workplace pension scheme, always check with the umbrella company which pension provider they use before registering to ensure you are happy with the provider.

Churchill Knight Umbrella’s chosen pension provider is Smart Pension.

Are you looking for an umbrella company?

Are you looking for an FCSA-accredited and SafeRec Certified umbrella company? Since launching in 2017, we have quickly become one of the most popular umbrella companies in the UK and ensure thousands of contractors get paid compliantly weekly.

You can access many exciting benefits if you choose Churchill Knight Umbrella as your payroll provider. These include our dedicated Onboarding and Umbrella Customer Service Teams, Same-Day Faster Payments, employee benefits, access to My Digital, a salary sacrifice service, and Churchill Knight Rewards if you choose to add it to your service.

Registering with Churchill Knight Umbrella is easy, and we’re here to support you every step of the way. To get started, please call our friendly Sales Consultants on 01707 871622 or complete the registration form online.