NHS Pesion problems - need advice...

blondends

Hi All,

I have a quick question here and probably a simple one for most to answer but unfortunately I have no knowledge what so ever about pensions.

My wife was employed at a local Primary Care Trust on a 6 month temporary contract. Upon receiving her first pay slip she noticed that a payment had been made to a pension fund - not knowing anything about this she spoke with her boss who confirmed that she had been automatically placed on the NHS pension scheme. She immediately called the finance department and requested that she be removed from the pension scheme - they informed her that it would take a couple of months for this to happen and then they would pay her back for the money that had been deducted from her salary. Her 6 month contract has now ended and she received a letter from the pension team saying that of the £250 they owe her she is only going to get back £120 for the year ending May 06 - then the letter states that after a deduction of TAX and admin fees she is only going to get back £80. I guess they will pay the remainder of the £250 next year.

To me this all sounds very suspect -

1. Can an employer automatically put you on a pension with out any agreement from the employee?

2. Why would they place a temp (with a 6 month contract) on a pension starting from the first day of work?

3. Can we contest the admin fee for them to make the refund of money taken without consent? (and because of the way the propose to pay the money back over 2 financial years - there will be 2 admin charges).


As I have said already I do not know much about things of financial nature but I would imagine that a pension would involve some sort of financial agreement which would need to be signed.

What I hope to do is get all the money owed paid back in one lump sum - with out an admin fee even if it means that we have to go to a small claims court or which ever legal process is necessary.

Any advice will be much appreciated.

Thanks in advance,

Chris

blondends

Hi All,

I am just bumping this to the top again - I am really in need of some basic advice.

Question: Can you be placed on a company pension with out formal written consent? (Especially a pension where they take 6% automatically from you wages!!!)


Please can someone in the know help me out with this.

Cheers,

Chris

mountainofdebt

I'm not an expert or anything but what does your wife's contract say? Did it say that she would automatically become a member of the pension scheme and that she would have to withdraw in writing?

As for whether a temporary employee would become a member of a pension scheme - well that's hard to imagine but stranger things have happened...perhaps they considered her to be a permenant worker by mistake?

As for getting the remainder back have they given you a breakdown of the money returned?

I seem to remember (when I worked in the pensions industry) that if a person left within 2 years of joining, they had the option of getting their personal contributions back.However the amount they got back was equal to the sum of their contributions less 20% tax. However this might just have been the way that the company that I worked for operated.

Did your wife get any paperwork relating to her 'membership' of the Scheme? If she didn't then it might be that it was some sort of automatic deduction and the payroll department needs to talk to the pension department .....might be an idea to ask the pension department for a copy of your wife's application to join the pension scheme and see what they come up with.

hth

merulok

...it is standard practice to enrol you into the NHS pension scheme when you begin a job with an NHS institution.
However you should be given a "welcome to the NHS pension scheme" pack on day 1 which explains that you will be enrolled unless you complete a particular "opt out" form (called SD502). I am a little surprised that temporary staff are automatically enrolled though.
I have no knowledge of the repayment issues (have you checked out the NHS pension scheme website - it may have further info on the rules: https://www.nhspa.gov.uk)

(See bottom of page 4 of the "Guide to the Scheme" booklet on the "Member Guides/Booklets" page. The other booklet "Leaving the Scheme" on the same page may also help - particularly pages 14/15 - "Deductions from refunds")

clarew

i too as an nhs worker believe it is correct that they enrol you in the pension scheme unless you opt out. I was aware as stated above that you can claim it back if worked less than 2 years-otherwise they just freeze it when you leave. (unsure about the tax etc, but contact the nhs pension people, i have usually found them to be fairly friendly.-the local primary care trust should also be able to give you the name of the local pension officer covering that trust who may be able to help, rather than the national pension body)

Debt_Free_Chick

blondends wrote:

1. Can an employer automatically put you on a pension with out any agreement from the employee?

Yes - the letter outlining her terms & conditions would have stated automatic entry, unless she confirmed beforehand that she didn't want to join.

2. Why would they place a temp (with a 6 month contract) on a pension starting from the first day of work?

To avoid claims of discrimination, if a temp is treated differently to a permie. Covered under the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002.

3. Can we contest the admin fee for them to make the refund of money taken without consent? (and because of the way the propose to pay the money back over 2 financial years - there will be 2 admin charges).

Not if automatic entry was specified. By not opting out, she was effectively agreeing to the deduction.

What I hope to do is get all the money owed paid back in one lump sum - with out an admin fee even if it means that we have to go to a small claims court or which ever legal process is necessary.

As she's now left employment, it would have been simpler all round to treat her as a normal leaver. Ask them if this is an option.