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  • FIRST POST
    • bozzy18
    • By bozzy18 22nd Jun 17, 4:19 PM
    • 61Posts
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    bozzy18
    auto enrolment
    • #1
    • 22nd Jun 17, 4:19 PM
    auto enrolment 22nd Jun 17 at 4:19 PM
    Hi, I have a stakeholder pension with my employer as part of my salary package that I negotiated before taking the job. they pay 5% of my salary into my pension along with my contributions. This has been in place for 4 years (I am the only employee with this - its a small organisation). Now employer are auto enrolling all employees onto a pension scheme (Peoples Pension) but saying contributions will be 1%! Can they force me to do this as this represents a big drop in their contribution into my pension fund.


    Can I say no to this and express a wish to stick with my current pension scheme that they initially set up for me 4 years ago?


    Thanks.


    Boz
Page 1
    • dunstonh
    • By dunstonh 22nd Jun 17, 4:29 PM
    • 89,852 Posts
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    dunstonh
    • #2
    • 22nd Jun 17, 4:29 PM
    • #2
    • 22nd Jun 17, 4:29 PM
    Can they force me to do this as this represents a big drop in their contribution into my pension fund.
    What does your contract of employment say?

    They cant use your stakeholder as that would not be AE compliant. So, changing provider to an AE scheme is understandable. However, the contribution change is the issue for you.
    • bozzy18
    • By bozzy18 22nd Jun 17, 4:35 PM
    • 61 Posts
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    bozzy18
    • #3
    • 22nd Jun 17, 4:35 PM
    • #3
    • 22nd Jun 17, 4:35 PM
    What does your contract of employment say?

    They cant use your stakeholder as that would not be AE compliant. So, changing provider to an AE scheme is understandable. However, the contribution change is the issue for you.
    Originally posted by dunstonh


    contract says:-
    4.2 Pension


    'company' offers you the opportunity to join a Stakeholder Pension Scheme with a maximum employer’s contribution of 5% of salary. The requisite forms will be given to you on request, with your written statement of your main terms and conditions of employment and you should return them within 2 months of starting your employment.
    • dunstonh
    • By dunstonh 22nd Jun 17, 4:50 PM
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    dunstonh
    • #4
    • 22nd Jun 17, 4:50 PM
    • #4
    • 22nd Jun 17, 4:50 PM
    contract says:-
    4.2 Pension


    'company' offers you the opportunity to join a Stakeholder Pension Scheme with a maximum employer’s contribution of 5% of salary. The requisite forms will be given to you on request, with your written statement of your main terms and conditions of employment and you should return them within 2 months of starting your employment.
    Originally posted by bozzy18
    They can change it from a stakeholder to AE scheme as that is due to legislation. That is a non-issue for you too.

    You need to raise the 5% contribution with the employer. Maybe everyone else will get the 1% and you will continue the 5%. Maybe the employer hasnt realised it yet and just needs a prompt.
    • bozzy18
    • By bozzy18 22nd Jun 17, 5:00 PM
    • 61 Posts
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    bozzy18
    • #5
    • 22nd Jun 17, 5:00 PM
    • #5
    • 22nd Jun 17, 5:00 PM
    They can change it from a stakeholder to AE scheme as that is due to legislation. That is a non-issue for you too.

    You need to raise the 5% contribution with the employer. Maybe everyone else will get the 1% and you will continue the 5%. Maybe the employer hasnt realised it yet and just needs a prompt.
    Originally posted by dunstonh
    Thank you so much - much appreciated. one more question why is stakeholder one not AE compliant? I thought AE only applies to those who does not have an employers pension set up already?
    • dunstonh
    • By dunstonh 22nd Jun 17, 5:16 PM
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    dunstonh
    • #6
    • 22nd Jun 17, 5:16 PM
    • #6
    • 22nd Jun 17, 5:16 PM
    Thank you so much - much appreciated. one more question why is stakeholder one not AE compliant? I thought AE only applies to those who does not have an employers pension set up already?
    Originally posted by bozzy18
    For a pension to be classed as AE compliant, it has to meet certain criteria. A group stakeholder pension scheme can meet the criteria but an individual scheme with an employer contribution cannot.

    For example, the employer has to automatically enrol you into the scheme. It cannot do that with an individual stakeholder.
    Individual stakeholder pensions are not subject to the cap on charges that AE schemes are. Individual schemes have you or your IFA as an administrator. AE schemes have the employer (or their IFA or administrator) as the administrator.
    • xylophone
    • By xylophone 22nd Jun 17, 5:20 PM
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    xylophone
    • #7
    • 22nd Jun 17, 5:20 PM
    • #7
    • 22nd Jun 17, 5:20 PM
    https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/how-much-do-i-and-my-employer-have-to-pay

    https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/in-a-workplace-pension-scheme-already

    '
    company' offers you the opportunity to join a Stakeholder Pension Scheme with a maximum employer’s contribution of 5% of salary.
    But no minimum is stated......
    • bozzy18
    • By bozzy18 10th Jul 17, 4:11 PM
    • 61 Posts
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    • #8
    • 10th Jul 17, 4:11 PM
    • #8
    • 10th Jul 17, 4:11 PM
    They can change it from a stakeholder to AE scheme as that is due to legislation. That is a non-issue for you too.

    You need to raise the 5% contribution with the employer. Maybe everyone else will get the 1% and you will continue the 5%. Maybe the employer hasnt realised it yet and just needs a prompt.
    Originally posted by dunstonh


    Thank you for this suggestion - my boss has now finally responded to my query saying stuff like finance is tight and I have to accept the change. I will effectively lose the 5% contributions and switch to 1% of my annual salary from 1st August. she more or less said like it or lump it - tough! Nothing I can do about it apparently. They are paying £100 a month into my pension fund and under the new scheme it will be about £240 a year! A significant drop - are they legally allowed to do this?!
    • xylophone
    • By xylophone 10th Jul 17, 6:06 PM
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    • #9
    • 10th Jul 17, 6:06 PM
    • #9
    • 10th Jul 17, 6:06 PM
    ! A significant drop - are they legally allowed to do this?!
    You might discuss with TPAS but it seems to me that the answer is that they can - looking at the wording of your contract, it would seem that they could have lowered their contribution to that too?

    The contribution payable by the employer under AE will increase, as will yours.

    What is going to happen to your stakeholder?
    • bozzy18
    • By bozzy18 10th Jul 17, 8:23 PM
    • 61 Posts
    • 7 Thanks
    bozzy18
    TPAS?


    As for my stakeholder - I guess it will either be frozen or I continue with my own contributions.
    • xylophone
    • By xylophone 10th Jul 17, 11:02 PM
    • 23,116 Posts
    • 13,400 Thanks
    xylophone
    TPAS

    https://www.pensionsadvisoryservice.org.uk/

    As for my stakeholder - I guess it will either be frozen or I continue with my own contributions.
    Better not to guess but to check the facts.

    At all events, it won't be "frozen" - the value will vary with investment performance.

    There is some information here about transfer to People's Pension.

    https://thepeoplespension.co.uk/employees/joining-the-peoples-pension/transfer-other-pensions/
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