Move or import your existing pension, all within Kota

We're excited to announce the launch of our new feature, Pension Switch, a non-advised service which allows users to move their existing pension provider to our integrated pension provider, Smart Pension. 

Managing multiple benefits across different platforms takes time and effort. With Pension Switch, you can move your Smart Pension scheme to Kota or bring your existing pension from another provider, all within minutes. This is the first time this seamless integration has been made possible, marking a considerable milestone in our mission to simplify HR and finance operations.

Typically, changing pension providers involves a lengthy and complex process with numerous steps and paperwork. With Pension Switch, Companies  can now seamlessly move their existing pension plans to the Kota platform to be managed alongside their insurance, and flexible benefits from a single platform. This means a hassle free transition, centralised billing and payroll reporting for core benefits and less inefficient administration. 

Smart Pension is one of the UK's largest workplace pension providers, with over 1 million members saving for their retirement. Kota works with Smart Pension to enable employers to set up and manage their pensions from within the Kota platform. Our integration with Smart Pension means that you and your employees don’t have to jump between benefit providers to manage your UK benefits packages - you can do it all within the Kota platform.

By combining pensions, insurance, and flexible benefits management, we eliminate the need for multiple services and tools. This consolidation saves time but also reduces the risk of discrepancies and errors, ensuring a smoother operation for your HR and finance teams. 

Bring your existing Smart Pension scheme.

If you have an existing scheme in the UK and would like to learn more about centralising your employee administration, talk with our team by booking a call 

Introducing Pension Switch: Move or import your existing pension, within Kota

Introducing Pension Switch

Wondering what happens to your UK workplace pension benefit after death?

Don't worry. Your workplace pension will be transferred to your nominated beneficiary upon death — but with certain conditions.

Let’s explore how it works with defined benefit and contribution pension schemes and whether your nominated beneficiaries get any tax relief.

What Happens to My Workplace Pension if I Die in the UK?

UK workplace pensions can be defined benefit or 

A. What Happens to a Defined Benefit Pension if I Die?

Defined benefit or final salary pensions promise a specified monthly benefit upon retirement. 

The fate of these pensions after death involves several possibilities:

Beneficiaries, such as a spouse or dependent, who receive ongoing pension payments will pay income tax at their marginal rate, regardless of the deceased’s age at death.

B. What Happens to a Defined Contribution Pension When I Die?

Defined contribution pensions accumulate a pension fund based on contributions from you and your employer, plus any investment growth. 

The options available to your beneficiaries depend on the status of the pension at the time of your death:

If your beneficiaries decide to draw down on your defined contribution pension after your death, the tax treatment depends on your age at the time of death:

The LSDBA replaced the previous lifetime allowance (LTA) in April 2024.

Remember these provisions to ensure your workplace pension benefits are maximised for your beneficiaries and aligned with your estate planning goals. 

8 FAQs About UK Workplace Pension Inheritance

Understanding the fate of your workplace pension after death is as crucial as having life insurance.

We’ll answer some more questions about UK pension inheritance to help you. 

1. How Can I Nominate a Beneficiary to My  Workplace Pension?

It’s easy — just fill out an online expression of wish form, usually available through your pension scheme's website or by contacting customer service directly. 

This form lets you specify who will receive your pension benefits upon death.

Review your pension’s annual benefit statement regularly and update beneficiary nominations as needed, as life circumstances can change over time.

2. What Happens if I Have Multiple Pensions?

Having multiple pensions means juggling different rules and beneficiaries across various schemes. 

Consider consolidating your pensions into one plan to simplify matters.

That said, weigh the pros and cons before consolidating — sometimes, nominating beneficiaries separately may better suit your needs.

3. How Does Pension Consolidation Affect My Beneficiaries?

Consolidating your pensions can simplify the inheritance process for your beneficiaries. 

By combining multiple pensions into one, you reduce administrative tasks and ensure that your beneficiaries have a clearer understanding of your pension assets. 

This can also reduce fees and improve investment options, benefiting your overall pension pot.

4. What Happens to the UK State Pension after the Pensioner’s Death?

After your death, the UK State Pension may transfer to your spouse or civil partner, depending on their age and the State Pension age rules.

The surviving partner may be eligible for an increase in their state pension or a bereavement support payment. 

They must inform the Department for Work and Pensions (DWP) about the death to process any eligible payments.

5. What Happens to the NHS Pension After the Pensioner’s Death?

Upon death, eligible dependents of a National Health Service or NHS pension scheme may receive:

How does a nominated beneficiary claim the NHS pension?

6. Do Inheritance Rules Differ Between a Workplace And Private Pension in the UK?

Yes, a workplace pension often includes employer-managed benefits and specific rules for lump sums and dependents. 

On the other hand, a personal pension offers more flexibility in beneficiary nominations and tax treatment.

7. Are Workplace Pension Funds Subject to Inheritance 

Inheritance Tax (IHT) typically does not apply to pension funds.

If your pension provider has discretion over who receives the death benefits, the pension remains outside your estate for IHT.

This means pension saving funds can be passed on without being subject to the 40% inheritance tax, which applies to estates above the £325,000 threshold.

Suppose you’ve instructed your pension provider to pay a specific person directly. In that case, there might be IHT implications, meaning the funds could be included in your estate and subject to inheritance tax.

8. What Role Do Employers Play in the Workplace Pension Inheritance Process?

If you’re an employer setting up a workplace pension plan, look no further than 

This digital benefits management software makes 

 enrolment and contribution management a breeze.

 today to empower your staff with an all-in-one digital benefits app.

What Happens to Your Workplace Pension When You Die? [UK Guide]

How much should you contribute to a workplace pension plan in the UK?

The minimum pension contributions for an employee’s pension pot are:

Keep reading to learn about qualifying earnings and how contributions work (with examples). We’ll also highlight the easiest way to manage UK workplace pension schemes.  

Employer vs. Employee Pension Contributions: Who Pays What in The UK?

The amount you can contribute depends on the employee’s pensionable earnings, which in turn depend on their qualifying earnings.

 and how they are tied to qualifying earnings in the UK. 

(Psst… this comes in handy in the next sections).

What’s the Minimum Pension Contribution for Employees?

The maximum contributions you can make while receiving tax relief depend on your relevant earnings in the UK. 

Relevant UK earnings include income from employment, self-employment, and other sources, such as salary, wages, bonuses, overtime, and profits.

What’s the Minimum Pension Contribution for Employers?

Let’s say an employee earns £30,000 a year. 

 (8%) to the employee’s pension would be £1,900.80.

So far, we’ve covered the minimum pension contribution, which is a great starting point.

But ask yourself: Does the minimum guarantee a comfortable retirement lifestyle for the employee?

How Much Should Employees Contribute to Their UK Workplace Pension?

Deciding how much to contribute to your pension involves several factors, such as:

That said, it’s also important to contribute without facing any penalties. This is where annual allowance and adjusted income come into play.

What Are Annual Allowance and Adjusted Income?

The annual allowance is the maximum amount you can contribute to your pension in a tax year (6 April to 5 April of the following year) with tax relief. 

For most people, the standard annual allowance is £60,000 in May 2024.

If you contribute more than £60,000 to your pension in a tax year, you will face a tax charge — at your 

However, if your adjusted income exceeds £260,000, your annual allowance might be reduced. This means that you will have a lower amount you can contribute to your pension in a tax year without facing a tax charge.

Adjusted income is an employee’s total taxable income before any Personal Allowances and after deducting certain tax reliefs. This includes:

Why You Should Contribute More Than the Minimum to Your UK Workplace Pension Plan?

Here's why paying in more to your workplace (or even a 

Contributing more to your workplace pension offers three key benefits:

Employers can benefit from offering higher contributions as well. A generous employer pension contribution can help:

Wondering what’s the best way to offer a competitive workplace pension plan to your UK team?

Easily Manage Employee Pension Contributions With Kota

Kota is a user-friendly digital pension app that simplifies 

, a reputable pension provider in the UK, Kota enables businesses to set up and manage pensions efficiently—regardless of their location or whether they have a UK bank account.

 to enrol your team in affordable and compliant pension plans effortlessly.

4 FAQs Related to Workplace Pension Contributions in The UK

We’ll answer some more questions about workplace pension contributions.

1. What Happens if an Employee Stops Contributing to Their Workplace Pension?

If you stop making contributions to your workplace pension, your employer may also stop contributing to your pension.

It will slow down the growth of your pension pot, as it will not receive new contributions from either you or your employer. But don’t worry!

Your pension pot will remain invested and continue to grow.

What if you decide to opt out of your pension plan?

You can do so within a month of enrolment to get a refund for any contributions you've made. After this period, you won't get a refund, but your existing pension pot will continue to earn investment returns.

2. Can I Contribute to a Pension After Retirement?

You can contribute to a pension after retirement. 

However, the amount you can contribute is limited by the annual allowance, which is £60,000 in May 2024. You may be subject to a tax charge if you exceed the annual allowance.

Moreover, you won't receive tax relief on contributions made after age 75.

3. How Does a Workplace Pension Differ from the NHS Pension, Personal Pension and the State Pension in the UK?

Each pension type addresses different needs, offering unique benefits based on employment type and contributions.

4. Can I Pay More Into My Pension Pot Through Additional Contributions? 

You can boost your pension pot through additional voluntary contributions (AVCs) or making an additional pension contribution via your provider or employer.

Additional voluntary contributions are one-off or regular payments that you make to your pension scheme to increase your retirement savings.

Moreover, a salary sacrifice scheme allows you to exchange part of your salary for non-cash benefits like pension contributions. The scheme enables you to make extra pension contributions to boost your pension pot.

UK Workplace Pension Contributions: Employer & Employee Guide

Looking to attract and retain global talent?

Offering tailored benefits is your golden ticket. 

Global employee benefits are non-wage incentives that acknowledge and address the diverse needs of an international workforce. Some examples include paid time off, company health insurance, occupational pensions, and remote work stipends. 

Stay tuned for a deep dive into global employee benefits and their management.

Metlife's 2024 Employee Benefit Trends Study

, 73% of employees would be more likely to stay with their current employer if they had access to a broader range of benefits.

Offering a comprehensive benefits package to your employees wherever they are comes with several advantages, such as: 

Now that we've covered the why, let's discover what to include in your global employee benefits package.

What Are the Types of Global Employee Benefits?

Any global employee benefits package will typically be a mix of: 

A. Statutory Benefits (Mandatory Benefits)

Statutory benefits are legally required programs employers must provide. These vary from country to country, depending on labour laws.   

Usually, statutory benefits include essentials like healthcare, pensions, paid time off, and unemployment insurance. 

Some benefits, like a state pension scheme, could be part of the country’s social security program. 

Mandatory benefits are typically funded through employee, employer, and state contributions.

An employer may also be responsible for processing contributions, submitting them to the concerned authority, maintaining accurate records, etc.

Let’s look at some common statutory benefits globally:

Supplementary benefits are additional perks employers offer voluntarily to their employees beyond legally mandated benefits.

To enhance workers' overall compensation package and keep them satisfied and motivated.

Some popular supplementary benefits globally include:

Fringe benefits are additional non-cash perks aimed at attracting and retaining talent. 

Unlike supplementary benefits, which enhance core benefits like health or retirement plans, fringe benefits offer non-essential luxuries to improve employee experience and workplace satisfaction.

Examples of Benefits Across Different Countries

Here’s what the employee benefits landscape looks like for different countries:

23+ Employee Benefits to Offer your UK Team in 2024

Here are our comprehensive guides on employee benefits structure in different countries:

While global benefits offer several advantages, managing them can be challenging.

What Are the Challenges in Managing Global Benefits?

Managing global employee benefits presents unique challenges to HR teams:

You can overcome these challenges with the 

Meet Kota: Your Gateway to Global Employee Benefits Management

) is a cutting-edge software solution that simplifies global benefits management.

Say goodbye to dealing with brokers and crunching numbers to fit your budget when managing employees in multiple countries.

Kota brings it together, partnering directly with trusted benefits providers across 

 to deliver hand-picked, cost-effective benefits for your employees.

Moreover, our benefits plans comply with your employee’s local employment laws. 

Our intuitive app also automates payroll tasks related to 

 and the UK to streamline processes further. 

What Employee Benefits Does Kota Support?

Our core offerings are the essentials every global benefits package needs:

Here are some more reasons you’ll love Kota:

How to Develop a Fool-Proof Global Benefits Strategy?

Here's a roadmap to build a winning global employee benefits strategy:

Global Employee Benefits: Attract & Retain Top Talent in 2024

In 2024, the maximum weekly rate for Ireland's State Pension (Contributory) is 

The State Pension (Non-Contributory) also

As these are the maximum personal rates, the amount you receive may vary based on your social insurance contributions, age, and the type of State Pension you qualify for.

Keep reading to discover how much State Pension you might receive when you retire.

How Much Has the State Pension Increased in Ireland from 2023 to 2024?

 that the State Pension and other social welfare payments will increase by 

Here’s a complete list of the 2024 State Pension rates. 

 is a weekly payment for people aged 66 and above who have paid enough Pay Related Social Insurance (PRSI) contributions.

The Department of Social Protection calculates your entitlements based on:

Here’s a breakdown of the new State Pension (Contributory) rates for 2024:

A. If you qualify after 1st September 2012, with: 

B. If you qualify before 1st September 2012, with: 

 to learn about the 2024 and 2025 pension updates, eligibility requirements, and how to apply. 

 is a means-tested payment made by the Department of Social Protection to people aged 66 or above who don’t qualify for the contributory pension.

Here are the rates of State Pension (Non-Contributory) in 2024:

We’ll answer some more questions about Ireland’s state pensions: 

1. What Am I Entitled to Receive if I Defer My Irish State Pension in 2024?

If you were born on or after January 1, 1958, and qualify for the maximum rate of State Pension (Contributory) in 2024, you can claim your pension anytime between the age of 66 and 70.

The pension entitlement you’ll get for each deferred year are:

This comes after the government allowed Irish citizens to delay receiving their State Pension (Contributory) payments until they’re 70. 

If you defer your Irish State Pension, you can 

 Those receiving the State Pension (Non-Contributory) 

2. Are Irish Citizens Satisfied with the State Pension Increases for 2024?

The Irish government increased State Pension payments to boost living standards and improve the financial sustainability of Ireland's older people and long-term carers.

However, advocacy groups like Age Action weren’t satisfied by this increase, arguing that it should’ve 

 to match the spending power lost due to the COVID-19  pandemic. 

 is €111,000, which is below 50% of the final salary recommended by financial experts for a comfortable retirement.

Boost Your Employees’ Pension with Kota 

The Irish government increased the State Pension and Social Welfare payment rates to address the 

 fail to support a comfortable retirement lifestyle, putting many retirees who rely on these pensions at risk of poverty.

Want to improve your employees’ retirement lives?

 and empower your people with an all-in-one digital benefits app.

What's the Irish State Pension Increase from 2023 to 2024?

Today, we’re launching ‘Bring Your Own Benefits’ on the Kota platform, allowing you to add your team’s existing benefits to the Kota platform for an all-in-one solution.

One of the key reasons customers love Kota is its all-encompassing nature. It’s the only platform where you can oversee every aspect of your core benefits, from HR operations to finance and payroll. This unique capability is powered by Kota's role as your 'source of truth', enabling us to streamline everything by connecting with insurance and retirement providers, all within Kota. Today, we’re going a step further and making it possible to add your team’s additional benefits, from health and wellbeing to learning and development and everything in between. 

Kota brings benefits administration into a new era by offering a seamlessly integrated platform that allows businesses to manage core benefits effortlessly — and now flexible benefits too. 

Unlike existing solutions that lack provider control and a consolidated view of benefits for payroll, Kota empowers employers to administer any benefit type with ease. 

From workplace pensions to gym memberships, Kota allows you to use multiple redemption types and link the tax implications to your payroll reporting to automate and consolidate your employee Benefit-In-Kind reporting whilst removing hours of tedious finance admin work every month.

 to learn more about Kota and how you can bring your existing benefits.

Bring Your Own Benefits to Kota 

After a year and a bit since Kota's beta launch to our first customers, we are thrilled to extend our availability to cover your team in the UK. 

We are excited to announce that Kota now offers Group Health Insurance with Vitality, which is delightfully easy to set up and manage—all within Kota, all within minutes.

By way of reminder, for those of you new around here, we believe the traditional way of covering your employees is outdated – it’s fragmented, clunky, and employees hate it. We’re building a new era of core benefits – one that’s global, affordable and delightfully easy to use for HR & Finance teams and their employees. We’ve partnered with the world's leading providers, like Smart Pension, Allianz, Canada Life and now Vitality, to provide this experience to a whole new generation of workers.

At Kota, switching to a new country requires becoming regulated to sell insurance in that market and partnering and integrating with our preferred provider on the ground so that our customers can enjoy an end-to-end experience of setting up and managing their benefits within our platform. Launching in the UK took us on a journey of receiving FCA authorisation and building a relationship with our provider of choice, Vitality Insurance. Working with Vitality has been a joy – from their highly competitive plans to their customer experience and rewards that are setting a new standard in the market and their long-term vision, which is very much aligned with ours – to serve a modern workforce by enhancing and protecting their lives.

Introducing Pension Switch: Move or import your existing pension, within Kota

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