Revenue has published updated pension guidance relating to employer contributions providing clarification on ‘special’ contributions, contribution refunds and the minimum contribution requirements under the Automatic Enrolment Retirement Savings Scheme.
Where a contribution is a special contribution, generally there is a requirement for the relevant allowance to be spread over a period of years. The guidance now states that spreading the allowance is not required where an employer’s special contributions in a chargeable period do not exceed its ordinary annual contributions.
The guidance also confirms that pension schemes may refund employer contributions paid in error without Revenue approval, provided the period over which the overpayment occurred was less than a year. However, if an employer has taken a tax deduction for the amount overpaid, any amount repaid will be taxable under section 782 TCA 1997.
The table in paragraph 4.1 of the guidance outlines the minimum pension contribution levels required to ensure an employee is not enrolled in the Automatic Enrolment Retirement Savings System.
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