employer paying less contributions to my pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
3 replies 954 views
m40m40 Forumite
34 Posts
Part of the Furniture
Hi my current employer has rolled out auto enrolment and as a
result I have lost out. My employer bought the business and my old contract with it 13 years ago which consisted of 10% contributions
paid by employer. I was informed 3months ago that from April he could no longer afford to contribute that amount and it was to reduce
to 3%. Do I have to accept these new terms as employers seem to be protected now with the 'due to the economic down turn take it or leave it attitude'. Has anyone else had experience of this.

Replies

  • greenglidegreenglide Forumite
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    It is a change to your contract of employment. You can refuse to accept the change and the employer can stop employing you and you can stop working for them.

    What you cannot generally can't do is to force the employer to keep on paying the same contributions unless you have a contract that says they will pay contributions at a particular level and will continue to do so forever in perpetuity?

    You can withdraw you labour, you can leave. Ultimately it is a matter of whether you wish to continue working for the employer.
  • atushatush Forumite
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    And I personally dont think it is anything to do with the economy (which is growing faster than anticipated now).

    It has to do with your employer seeing they are paying in more than the HAVE TO, and perhaps feeling the more generous pension was having no affect in recruitment/retention of staff. Find a better job if you can, find a job as god and use it as a bargaining chip with your old employer
  • ThrugelmirThrugelmir Forumite
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    atush wrote: »
    And I personally dont think it is anything to do with the economy (which is growing faster than anticipated now).

    It has to do with your employer seeing they are paying in more than the HAVE TO, and perhaps feeling the more generous pension was having no affect in recruitment/retention of staff. Find a better job if you can, find a job as god and use it as a bargaining chip with your old employer

    Or that the burden is simply to much for the Company to bear.

    I would suggest that the OP receives suitable recompense such as a reduction in working hours. Otherwise the employer may well find themselves at an industrial tribunal.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
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