Er in doors has just started a new job. Its a pernament job working part time for 16 hours a week @ £9 per hour.

she has been asked if she wants to join the superannuation scheme.

What is it exactly? We know its some kind of pension, but thats about it.

How much of her wage will be taken?

Whats the employers contribution?

Is it a good thing?

etc etc
A superannuated pension scheme is one where a member builds up entitlement to both a pension income and a lump sum upon retirement. It is a final salary scheme, that is to say the the pension in retirement is based on the number of years service within the scheme. The pension rights within the scheme are guaranteed, so there is no risk involved. The pension in retirement will probably be linked to inflation, most superann schemes are.

contribution rates for members vary with the various schemes but the average for members is around the 5 to 6% of salary with the employer making up what ever else is required. Very important that last bit. The employer must by the rules of the scheme fund any shortfall. as an example the NHS is currently funded at 6% by members and 14% by the employer.

My advice would therefore be to join the scheme, even if someone is a member for a very short period of time there are benefits worth having, and if someone is a member for less than two years if they leae service the scheme normally refunds their contribution to them.

If you want more info grab the scheme hand book or log onto the scheme website and if you want anything explaining phone them up or ask on here.
Can you say which scheme it is? [eg is it the NHS scheme?] You should really take advice from an independant financial adviser - I am 'pensions officer' for the employees where I work, but whilst I can hand out leaflets produced by the pensions agency, I am forbidden to even comment on the scheme compared to others.

'Er Indoors should have been given a pile of leaflets describing the scheme [how to join, AVCs, how to leave, etc]. However, the more knowledgeable that post on this site may be able to give you the odd hint, or a steer where to go for more info.

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