Advice on company pension

Firefly66

Hi there,

It is my understanding that all businesses that meet certain criteria have to offer all eligable employees a pension thay can pay into.

I have worked for the same company for over 5 years and not once from the time of my initial interview with them up until now have they offered or provided details on a pension scheme I can pay into. Now I know for a fact that the business does have a pension scheme but its seems to be kept quiet and reserved for the sole use of directors of the company.

Are my employers on dodgy ground by not freely offering a pension scheme to all employees? They certainly fall into the catergory of a company that should be offering one in terms of employee numbers etc. Also where do I stand in terms of the fact that I have now potentially lost out on 5 years plus of pension contributions had I known and been told about a company pension scheme at the time I started working for them.

Thanks

Loughton_Monkey

Yes, there are new laws afoot that will eventually make your employer 'offer' you a pension, but it will be extremely small - 1% I believe, to start with.

So as far as I understand it, unless your employment contract said (says) any different, they do not have to offer to put you into the company pension scheme, even for your own contributions, let alone for them to contribute additional money into it themselves.

Although much more rare these days, there certainly used to be companies that have strict eligibility requirements for their pension scheme. Typically 'management' only, or maybe restricted simply to people they 'choose' as 'career staff' rather than 'workers'. This may be the case with your company, but clearly I don't know.

Perhaps you should ask them when you will become eligible.

jamesd

Your employer has been required to offer you access to a "stakeholder pension" if there are more than five employees and you earn more than £97 a week. There have been exceptions if there is an occupational scheme you can join or if there is an alternative personal pension that the company offers where the company pays in at least 3% of your pay. There's no requirement that the stakeholder pension has competitive pricing or that your employer pays anything into it. Stakeholder pensions aren't the most competitive around.

As a practical matter there is no worthwhile enforcement and since it seems that your employer wouldn't be willing to pay in anything you haven't lost any money other than what you could have gained by setting up a pension on your own. Today there may be no enforcement at all.

This is changing and there will soon be a requirement for employers to automatically enroll almost anyone who doesn't opt out into a pension scheme. More information and a schedule of when companies must offer this are available.

dunstonh

It is my understanding that all businesses that meet certain criteria have to offer all eligable employees a pension thay can pay into.

The rule has ceased to be enforced and overtaken with new requirements which are being phased in to 2017.

not once from the time of my initial interview with them up until now have they offered or provided details on a pension scheme I can pay into.

Have you asked them?

Now I know for a fact that the business does have a pension scheme but its seems to be kept quiet and reserved for the sole use of directors of the company.

Which is quite normal and to be honest quite fair.

Are my employers on dodgy ground by not freely offering a pension scheme to all employees?

no.

Also where do I stand in terms of the fact that I have now potentially lost out on 5 years plus of pension contributions had I known and been told about a company pension scheme at the time I started working for them.

You could you have paid into any pension you like. So, you have no standing as the failure for you to pay is your own fault. No-one elses. You can of course now pay the amount you would have paid (if that is your argument) into any pension of your choice as a single payment. Therefore making up for the 5 years you now decide you should have paid.