auto enrol 'NEST' pension- temp agency taking ££, B4 I get info option to opt out?

brightonman123

Whether this NEST thing is even suitable for temp staff, is another matter..

Got bumf re the auto enreol pension thing yesterday, and opted out- not appropriate, or affordable right now..

but see my temp agency has started to debit subs, starting from this week's payslip already??


Erm, dont people have to be given NOTICE of payments, and prompted to get proper advice, on whether a pension is suited to your needs, before starting one?

All seems just too perfect for my liking.. hasnt this government robbed us enough??

hyubh

brightonman123 wrote: »

Whether this NEST thing is even suitable for temp staff, is another matter

Maybe so, but it's a deliberate policy decision by the government.

but see my temp agency has started to debit subs, starting from this week's payslip already??

No employer is legally allowed to accept an opt-out election from a new employee before the employee has actually started. Moreover, if you are still with the agency after 3 years, they will have to opt you back in again and it will be 'rinse and repeat'...

All seems just too perfect for my liking.. hasnt this government robbed us enough??

The money doesn't go to the government. Instead, the idea is force more widespread private provision in order to limit the need for state benefits in old age...

brightonman123

have been with the temp agency for a while now.. dont recall getting anything about this previously,,

hyubh

brightonman123 wrote: »

have been with the temp agency for a while now.. dont recall getting anything about this previously,,

Perhaps their 'staging date' (i.e., the date at which they must auto-enrol people) has only just passed (bigger employers had to start auto-enrolling first). Alternatively, if the agency's staging date was a while ago, perhaps your own earnings for one month triggered the need to auto-enrol you.

dont recall getting anything about this previously,

IANAL, but I think companies just have to notify employees/'job holders' as it happens.

jamesd

All employers that pass the staging date are required to auto-enrol people without asking them first. They can delay the auto-enrolment for up to three months. The reason for this enrol first approach is concern that some employers would attempt to persuade their employees to opt out. Employees can contact the pension company to opt out and it should have sent a letter giving details of how to do that. Those who opt out within the first month should have their contributions returned to them in the next payroll run.

stinktankcynic

OK. My wages are deducted, the money is sent to the pension firm. I decide to opt out. If the money is invested and the stock market falls, who takes the hit if I ask for my contributions back?

If I decide to opt out paying 1%, why should I lose the employers contribution?

This is unfair when you consider some firms pay non contributory pension contributions for staff.

The rules should be changed so that the firms contributions go into the pension even if you opt out of paying your own.

hyubh

stinktankcynic wrote: »

OK. My wages are deducted, the money is sent to the pension firm. I decide to opt out. If the money is invested and the stock market falls, who takes the hit if I ask for my contributions back?

From NEST's advice for employers:
"If you do pay contributions to NEST during the opt-out period, we don’t invest them straight away. We hold them as cash until after the opt-out period. If we get a valid opt-out request from the worker, the money will be paid back to you. Six weeks from the enrolment date, if we haven’t received an opt-out request, the contributions are invested into a NEST retirement fund."

http://www.nestpensions.org.uk/schemeweb/NestWeb/public/NESTforEmployers/contents/manage-refunds-from-opt-outs.html

If I decide to opt out paying 1%, why should I lose the employers contribution?

Or put the other way: why should your employer be forced to contribute to your pension if you can't be bothered to contribute yourself?

This is unfair when you consider some firms pay non contributory pension contributions for staff.

E.g.? That said, the best pensions for relatively ordinary people typically involve high employee contribution rates - they are just more than matched by super-high employer rates.

The rules should be changed so that the firms contributions go into the pension even if you opt out of paying your own.

Why?

stinktankcynic

jamesd wrote: »

All employers that pass the staging date are required to auto-enrol people without asking them first. They can delay the auto-enrolment for up to three months. The reason for this enrol first approach is concern that some employers would attempt to persuade their employees to opt out. Employees can contact the pension company to opt out and it should have sent a letter giving details of how to do that. Those who opt out within the first month should have their contributions returned to them in the next payroll run.

If the staging date is January 1st, then the firm can delay until the 1st march?
If the employee wants to auto-enrol then the firm has to put them in and pay con's from 1st January?

jamesd

Yes. If they choose to delay that have to tell employees in writing that they are doing that (page 6).

atush

If you do opt out, are you intending to work til age 80+? What will you retire on if not a pension?

Employer's contribs are 'free money'. Which you don't get unless you pay in. Period. And Fair too.

brightonman123

i 'opted out' last week, though neither myself or agency has yet to receive anything to confirm stopping deductions..

Nest staff most unhelpful when I rang today, and site not liking my details.. tried various combo's of the ID NINo etc..:mad::mad: