ESF action note - Pension deficit
The Managing Authority have decided following receipt of legal advice, that where an employer is required to make increased contributions to the pension fund, this is an eligible direct staff cost.
The employer is obliged to make the payment, which must be directly attributed to staff working on the project and is the cost of employing staff.
These increased pension contributions are classed as superannuation contributions which are an eligible direct staff cost, as they are a regular payment made into a pension fund towards the costs of an employee’s future pension. The costs should be in line with the employer’s usual employment practice
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