Does employer HAVE to provide a pension?

Daisies

I'm currently self-employed and have a stakeholder pension which I've had since I was 22 (am now 27). I've just applied for a job, but there was no mention of a pension anywhere in the (otherwise very fulsome) details. It's for a 3 year fixed term post, so I wondered whether the employer was obliged to provide a pension (they're a charity employing somewhere between 30 and 50 people, I think?). I don't want to miss out on any potential employer contributions, but not sure if I can have a pension with someone just for 3 years. Or could I ask them if they'd contribute towards my stakeholder?

It's something I'll bring up at interview, I just want some facts to support me!

Thank you!

exil

Good news - yes, they do have to provide "access" to a Stakeholder Pension

Bad news - they don't have to contribute anything to it

http://www.thepensionservice.gov.uk/employer/stakeholder-introduction.asp

You will be getting credits for the Second State Pension though, which you wouldn't have got when self-employed.

greyteam1959

As far as I am aware an employer has to provide ACCESS to a pension scheme.This might only be giving you a leaflet telling you your options re stakeholder pensions etc.They do not have to provide the actual pension setup or make contributions.
I think that you would be quite sensible to politely ask what if any pension schemes they operate and have much they would contribute if anything to your pension scheme.
As in all cases like this its how you ask !!!!
I see you already have a stakeholder pension scheme running......good for you cos if you have started it now it should be worth a tidy sum by your retirement age

Daisies

Thank you!
It's something I will definitely ask about at interview. The salary they're offering is on the low side for the type of work, which is also something I might (tactfully!) mention, and there aren't any other benefits listed, so provision of a pension scheme might be the thing that swings it for me if they do offer me the job (otherwise I'm quite happy to carry on being self-employed!).

dunstonh

From 2012, there will be forced employer contributions for those companies that do not currently offer it.

exil

Thanks dh I hadn't known that, will be useful for OH whose employer doesn't contribute at the moment.

Debt_Free_Chick

Daisies wrote: »

It's for a 3 year fixed term post, so I wondered whether the employer was obliged to provide a pension (they're a charity employing somewhere between 30 and 50 people, I think?).

If they provide a pension for someone doing broadly the same work, but on a permanent contract, then they must offer you the same pension - unless they have good reasons (objective justification) for not doing so.

Under the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations, all of your terms & conditions, including access to a pension scheme and other benefits, must be broadly comparable to those offered to a permanent worker. In other words, they cannot discriminate simply on the grounds that you have a fixed term contract.

So ... what gets offered to permanent employees?

Paul_Varjak

Here is the guidance leaflet for employers on Pension Schemes for employees:

http://www.thepensionservice.gov.uk/pdf/pme/pme1nov05.pdf

Daisies

Debt_Free_Chick wrote: »

If they provide a pension for someone doing broadly the same work, but on a permanent contract, then they must offer you the same pension - unless they have good reasons (objective justification) for not doing so.

Under the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations, all of your terms & conditions, including access to a pension scheme and other benefits, must be broadly comparable to those offered to a permanent worker. In other words, they cannot discriminate simply on the grounds that you have a fixed term contract.

So ... what gets offered to permanent employees?

It's a unique project so there would be no one doing work at all like my job (if I get it!), although they do have employees on permanent contracts (but doing very very different jobs in different depts).

pefwin

mervyn11 wrote: »

As far as I am aware an employer has to provide ACCESS to a pension scheme.This might only be giving you a leaflet telling you your options re stakeholder pensions etc.They do not have to provide the actual pension setup or make contributions.

My understanding is that the employer does have to arrange the set up and make arrangements for the deduction of contributions via the payroll.

My opinion would be that they need to offer you access to a stakeholder if no other arrangement exist and you have longer than a 3-month contract.