My Employer and Stakeholder Pension

matt4504

Hey,

I currently work for a medium sized retail chain employing about 6000 people i'd say. Managers and above are entitled to join an Occupational Scheme where the company puts in some money and you put in some money in. Anyway for everyone below the level of manager according to my employee handbook we are entitled to join a Stakeholder scheme run by AEGON Scottish Equitable. Anyway I contacted HR and they said that due to there being such a small amount of people wanting to join that they were not running it due to the costs of setting it up not being in their benefit.

Isn't this illegal? I do find the whole thing a bit stupid that it's one rule for the managers and another rule for us. I can understand that the company has people coming and leaving but so does everyone else. Anyone got any advice as a few of us in my store want to join but can't.

Thanks

Matt

dunstonh

Isn't this illegal?

Technically it is unlawful. However, the recent pensions bill has stated that requirement is being removed with the introduction of the NPSS in 2012. It isnt being enforced by the authorities any more.

I do find the whole thing a bit stupid that it's one rule for the managers and another rule for us. I can understand that the company has people coming and leaving but so does everyone else. Anyone got any advice as a few of us in my store want to join but can't.

Why create trouble for such a non issue?

You gain nothing by having your monthly payment taken from your payslip instead of direct debit. You are forced to choose the employer's scheme rather than having your own choice. Why would you want to pay into a hollow scheme from an employer?

Debt_Free_Chick

I'm not so sure that it is unlawful - there is nothing to say that any particular grade of staff has to be given the same type of pension as a different grade. There are anti-discrimination laws - but not one that covers differents grades of staff.

It's been common for a long, long time for more senior staff to get better pensions - and better salaries, bonuses, cars, Private Medical Insurance etc etc

Is your employer paying into your Stakeholder pension?

dunstonh

Just for reference, my response to the unlawful bit was about not offering the facility to pay via the payslip.

the employer can operate as many different versions of pensions for different pay grades etc as they like. That is quite a normal thing.

Debt_Free_Chick

dunstonh wrote: »

Just for reference, my response to the unlawful bit was about not offering the facility to pay via the payslip.

the employer can operate as many different versions of pensions for different pay grades etc as they like. That is quite a normal thing.

Ah, thanks for that. I'd overlooked that the employer had to offer payment of employee contributions by payroll deduction. Thanks