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Procedures for auto enrolment

edited 30 November -1 at 1:00AM in Auto-enrolment
8 replies 7.8K views
roygoodbeatroygoodbeat Forumite
6 posts
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edited 30 November -1 at 1:00AM in Auto-enrolment
Just a quick question. Our employer has e mailed everyone regarding auto enrolment. They have stated that they will be deducting monies from this months salary. They have given 1 weeks notice.

None of us have seen any details regarding the pension scheme.

Are they allowed to deduct monies before giving us any infomation (Ie, is this against pension regulations) and can they only give a weeks notice to deduct the money.

Replies

  • WestonDaveWestonDave Forumite
    5.2K posts
    Rampant Recycler
    In essence yes - it makes no difference whether you have the information or not, they will have chosen a pension provider and will deduct the money. You cannot stop them doing this - you can only opt out after the event by contacting the pension company directly and stating you want to opt out (within the required timescale) and requesting the deducted money is refunded. They have no options over this - they cannot allow you to opt out in advance and cannot process an opt out themselves.


    So the way it will work is that you will have the money deducted this month, shortly afterwards you will get a welcome pack from the pension provider which gives you details of the scheme and details of how to opt out if you wish.


    Ideally more communication would have come from the employer to you but to be fair its yet another imposed bit of admin on employers and many are struggling just to get the schemes set up etc. With the pressure on external advisors its also hard to get them timetabled to come in and present information so employers who don't understand this themselves may be left with a choice of struggling to present information themselves or just doing the bare minimum.
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  • It's unprofessional, but not illegal.
    Employer's have a responsibility to automatically enrol staff, and should notify you, but they don't have a minimum notice period, and they do not need your permission (like student loans and wages arrestments)

    I can tell you, from a payroll perspective, auto-enrol can be a real headache.
    Staff cannot opt-out before their enrolment date.
    If we send the notification too early then we can't accept their opt-out notice, if we send the notifications too late they'll miss the payroll cut-off! You can't win!

    Most employers WANT you to opt-out, as it saves them money, and the administrative burden of refunding you.

    If complete an opt-out form within 3 months they should refund this for you.
  • Just for clarification for any future readers.
    If complete an opt-out form within 3 months they should refund this for you.

    Not completely accurate - refunds go back 1 month. 'You must issue a full refund of any contributions the staff member has made within a month of receiving a valid notice.' - TPR
  • hi its not 1 month its actually 30 days - also, you can chose to leave at any time but will not be refunded after the 30 days.
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  • Debt_Free_ChickDebt_Free_Chick Forumite
    13.3K posts
    ✭✭✭✭✭
    hi its not 1 month its actually 30 days - also, you can chose to leave at any time but will not be refunded after the 30 days.


    The rules are different for an auto-enrolment refund. You have one calendar month in which to opt-out and get a refund (actually, a reversal of the deduction made through payroll and reversed through payroll). The start/end date for that one month period should be in the letter you get which confirms that you've been auto-enrolled. This confirmation comes after the first payroll deduction, so it's not the first communication you get about auto-enrolment.


    The confirmation will tell you how to opt-out, who to contact for a form (if required) and the one month opt-out window. If you opt-out within that window all the deductions made to date will be reversed. That could be one or two deductions depending on the timing of the window and completion of the opt-out form.
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  • It's unprofessional, but not illegal.
    Employer's have a responsibility to automatically enrol staff, and should notify you, but they don't have a minimum notice period, and they do not need your permission (like student loans and wages arrestments)

    I can tell you, from a payroll perspective, auto-enrol can be a real headache.
    Staff cannot opt-out before their enrolment date.
    If we send the notification too early then we can't accept their opt-out notice, if we send the notifications too late they'll miss the payroll cut-off! You can't win!

    Most employers WANT you to opt-out, as it saves them money, and the administrative burden of refunding you.

    If complete an opt-out form within 3 months they should refund this for you.

    Hi just to say the way I work this with my clients is that anyone who states they would like to opt out before the staging date I add them to a spreadsheet and send this to payroll so no deductions are taken. This then means that although they are still joining the scheme, then opting out, no deductions are made. this was very important for some of the lower earnings employees as every penny (understandably) counted for them. This is one of the many reasons why using an IFA for AE makes sense - but then I am biased about this.

    YOU DO NOT HAVE 3 MONTHS TO OPT OUT. You have a month for when you join the scheme (when the deduction). However, you can leave the scheme after this time but cannot receive a refund.

    Most employers do not want you to opt out - they want you to do what you want and they meet to regulations. In fact, if they have lots of opt outs it means an investigation by the regulator and trust me much cheaper for them to pay your pension contributions than the fines that they can impose!
    Sealed Pot Challenge 373 - Target £300- Total £56.78
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  • utopiahutopiah Forumite
    308 posts
    Part of the Furniture 100 Posts Combo Breaker Mortgage-free Glee!
    ✭✭
    hi I was auto enroled into lgps and have been paying £12 in payments. I have two jobs in a school and work in total 37 hours. Our school has now converted to an academy as from the 1/10/2015. we have just received our new wage slips from the new trust and i was a bit surprised to find two sets of pension payments have been deducted. having asked around other colleagues who also do two or more jobs within the school, they have always had separate pension deductions for each job. I can't understand why i have only been paying one pension payment. surely i should have been automatically enroled for both jobs. i did not opt out. caan anyone shed any light?
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  • Hi

    Can you DM me more details and I will get back to you with the answers? I need salaries for each, hours worked and your DoB.
    happy to help
    Sealed Pot Challenge 373 - Target £300- Total £56.78
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