Too Young for Pension Scheme?

JCS1

Hi,

Wonder if you can help with a query I have relating to a previous employers pension scheme:

• Joined company in mid May 1997 and left December 2006
• When I started, I was too young to join the pension scheme, as you could only join at the start of the financial year after your 21st birthday.
• 21st birthday June 1998
• Joined pension scheme 1st Feb 1999 at first available opportunity.
• So there is a period of 20 months (June 97 - end Jan 99) where neither myself or the company were making contributions because of the lower age limit.
• It was a generous scheme, for over 31's employee paid 5% and company 10.75%, though it was lower for under 30's and 25's but still quite high percentages

So, was having a lower age limit in the pensions scheme rules (which have subsequently been changed) illegal? Can I apply to the Trustees for them to put a amount into my pension fund to correct this?

Many thanks in advance.

MikeJones_2

JCS1 wrote: »

So, was having a lower age limit in the pensions scheme rules (which have subsequently been changed) illegal?

In a nutshell, no - at the time that you joined it was not uncommon to either have an age-related commencement date or a minimum period of employment (e.g 12 months or 2 years) before an employee was eligible to join an employer sponsored pension scheme.

The most common defence of these rules was that it avoided the costly administration of 'short service employees'.

Age discrimination legislation has since been tightened up in respect of occupational pension schemes but was not retrospective.

JCS1 wrote: »

Can I apply to the Trustees for them to put a amount into my pension fund to correct this?

You can try (anything's possible), but given the above I can't think why the scheme/employer would agree to it.

Hope that helps.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

JCS1

Hi Mike,

That does help thanks - I kind of guessed it would be a long shot.

I doubt the age limit was in place to avoid short term employees - anyone over the age of 21 could join the pension scheme from day one of employment, which made me wonder if the age thing was illegal.

Thanks anyway.