Why would I set an upper limit on contributions?

Setting an upper contribution limit is useful if you or your members sometimes want to pay more towards their retirement pot. It gives you the flexibility to increase contributions for them without moving them to another group.

When you tell us how much you’ll pay you can choose to pay contributions that are above your selected contribution rates.

To set an upper limit you’ll need to click task 5 of the set up process. After adding the contribution rates, you’ll need to select ‘Yes’ when we ask you ‘Would you like to set maximum contribution rates?’. We’ll then ask you to enter the maximum contribution rates you want to allow for you and your workers.

You can enter anything up to 100 per cent in the ‘Maximum employer contribution’ and ‘Maximum worker contribution’ boxes. We’ll still only expect minimum contributions from you. Entering 100 per cent doesn’t mean you’ve agreed to contribute 100 per cent of your workers pensionable earnings. It means you can contribute any amount up to 100 per cent.