Auto enrolment, pension deducted from salary but not paid to company

username

My employer has enrolled us into a pension scheme via auto enrolment, and have chosen Standard Life to be the provider.

For the past few months they have taken the deductions out of my pay, and they show on the payslip.

I have received little infomation from my employer or SL, besides the amounts I/they are paying in and that a letter will follow if I want to opt out.

It has now been 2 months since and I have no further full information about the scheme, and when I have contacted SL directly, they say the reason why I have not received said information, is that my employer has not joined us to the scheme?

Is this normal practice to deduct the monies for a pension but not pass them onto the provider?

It sounds a little fishy to me, but I was wondering if anyone else had a similar situation, or if it is "normal" practice, to reduce admin overheads, so that those that want to opt out can do so easily and they can then enrol those that wish to stay after the dust has settled?

Thanks.

TheBunting

I have the same scenario so took my activation code (from my letter about the scheme) and set up my online account for it. I have had deductions yet there is no funds in the pension. However it said in small writing that it doesn't update until it's at least 3 months old. I am going to wait out the 3 months and if it doesn't update to show any kind of funds being put in before I enquire.

Taylorette

Same situation here, but I have received absolutely nothing about my enrolment.

Noticed the deductions on my payslip so contacted my employer asking who their chosen pension company was, as I had not been told anything - my contract states that I will not be enrolled prior to knowing who the company is, how much will be deducted and how often. I was just told to contact Standard Life because they should have sent out the information (no interest in what my contract says). Now Standard Life tell me they can't do anything because I don't have any documentation to refer to!

So I have been getting money deducted for a workplace pension every week with no idea of what's actually happening to it.

TheBunting

I am the same however because I had documentation, they were able to look and said that after 3 months that is when it starts to update on my online account.

However it is law that your employer give you the correct information in regards to your auto enrolment scheme and where they are putting the deducted money.

Cyberman60

It may be that payments will be made in a lump sum rather than every week/month to cut administration costs. Just a thought.

TheBunting

Cyberman60 wrote: »

It may be that payments will be made in a lump sum rather than every week/month to cut administration costs. Just a thought.

I asked this and although I get weekly they still said they are normally paid in a lump sum monthly. It has been 2 months+ now...

Taylorette

I can now say I am in exactly the same position as the OP!

Finally got Standard Life to check my details using my NI number and low and behold - I am not enrolled into any pension plan with their company.

I did think this was the case, but wanted Standard Life to confirm before I took it further with my employer. I'm now waiting to hear their explanation.

Taylorette

OP - have you got any further with this? I am still awaiting an explanation from my employer.

AEGuru

Hi guys, you should go away and find out what your employers staging date is. BY LAW they must send you written communication within 6 weeks of Their staging date informing you that you've been enrolled onto the scheme. So if it's 6 weeks after their staging date and they haven't sent you any letters then they are already breaking the law.

Employers should also pay contributions to the provider by the following month, but they can withhold payments to the scheme for up to three months. Which may explain why you can't see any money in your pension pot. Saying this however, the employer must also send information to the provider every time they run their payroll letting them know who has been automatically enrolled onto the scheme. So standard life should already know who you are, your age, earnings etc etc.

I would advise that you put a complaint to your hr department and keep copies of everything. If you aren't satisfied with the reply then go straight to the pensions advisory service.

I'm quite clued up with automatic enrolment so any questions then please feel free to get in touch.

AE GURU

username

Taylorette wrote: »

OP - have you got any further with this? I am still awaiting an explanation from my employer.

Sadly not, it seems that nobody seems to know what it is happening! We lack an HR department, so that's not really an avenue I can go down. All I want is mroe information and the T&Cs! SL have emailed me back to just wait for further information and that I have not been joined etc. Sorry if I am being deliberately vague but I don't wish to reveal too much info so that I can be identified...

Thanks for the information AEGuru, I will see what I can find out. I presume the thin single-sheet A4 job that SL have sent me is their 'communication'.

Employers should also pay contributions to the provider by the following month, but they can withhold payments to the scheme for up to three months. Which may explain why you can't see any money in your pension pot. Saying this however, the employer must also send information to the provider every time they run their payroll letting them know who has been automatically enrolled onto the scheme. So standard life should already know who you are, your age, earnings etc etc.

They've now had 4 lots of pension money out of my salary so maybe I should start getting some form of communication, if they have withheld it?

I have also checked the staging date using this tool and it shows a date in middle of 2014!

AEGuru

Regardless of whether or not they hold the payments, you should have still received communication 6 weeks after the companies staging date. If they aren't sending that communication out then they are breaking the law.