Problems with my pension

w00519772

I have asked a few questions on here about my pension plan recently. I now have some more facts. I received a new contract of employment in August 2013 when my department was outsourced and there was an email, which said you must fill in a form by December 2013 in order to join the pension scheme (employer contributes 5%) otherwise you are enrolled on the default scheme (employer contributes 1%). Here are the sequence of events:

1) I filled in the form in October 2013 and posted it from an external location (home).
2) I emailed the Payroll department in December 2013 from my work account asking them to confirm that they have received it. Here is the email I sent in at the beginning of December 2013:

Dear payroll

Please would you confirm that you have received my application to join the pension scheme? I sent it from an external location

Regards

End of email

3) I emailed Payroll from my work account in June 2014 asking why I was contributing just 1% and my employer was contributing just 1%.

The issues I have are:

a) They seem to have lost my form
b) They did not respond to my email (point two above). I still have the email in my work sent items.
c) With regards to point three above; they said that the company would not increase its contributions if I increased my contributions. I still have the email in my work sent items along with their response. I was entitled to join the better scheme at the time so I believe this advice was wrong.

They originally agreed to backdate, but then changed their minds stating that they did not receive the form. They said I should of checked my payslip, however I argue that I did as per point 2 above.

I feel very aggrieved by all of this. My line manager and the union are going to support me. Where do I stand from a legal perspective?

PeacefulWaters

Legally I think you're stuffed if they're meeting their obligations under pension regulations.

Definitely one for the union to help with.

Good luck.

w00519772

The point is that I made my intentions clear that I wanted to join. They have made a mistake, which they want me to pay for. In my contract of employment it states the higher rate, though it does say you have to fill in the form to join. I filled in the form on time and made them aware that I filled in the form.

hyubh

w00519772 wrote: »

I received a new contract of employment in August 2013 when my department was outsourced

Originally you claimed you were TUPE'd, now with that you seem to be saying you weren't. Very confusing.

there was an email, which said you must fill in a form by December 2013 in order to join the pension scheme (employer contributes 5%) otherwise you are enrolled on the default scheme (employer contributes 1%).

What pension entitlement did your new employment contract say you actually have? If (like mine!) it's pretty vague and directs the reader to HR, what does the latter's formal documentation about the company pension have to say? I really wouldn't go solely on an email that you presumably just happened to be on the distribution list for.

w00519772

hyubh wrote: »

Originally you claimed you were TUPE'd, now with that you seem to be saying you weren't. Very confusing.



What pension entitlement did your new employment contract say you actually have? If (like mine!) it's pretty vague and directs the reader to HR, what does the latter's formal documentation about the company pension have to say? I really wouldn't go solely on an email that you presumably just happened to be on the distribution list for.

I was originally TUPE'd across in 2012 (terms and conditions were the same). I then signed a new Contract Of Employment in August 2013 (everyone did). The new contract (dated August 2013) states the contributions are 3% and 5% for me and the employer respectively ("Employee contributions to the scheme are currently 3% and the company contributions are 5% of pensionable salary"). It does also state: "The government has introduced a requirement for employers to automatically enroll employees into a basic level pension scheme, although you will be able to opt out".

I did opt out at the correct time but they lost my form and did not respond to my email.

hyubh

w00519772 wrote: »

I was originally TUPE'd across in 2012 (terms and conditions were the same). I then signed a new Contract Of Employment in August 2013 (everyone did).

OK, makes sense.

The new contract (dated August 2013) states the contributions are 3% and 5% for me and the employer respectively ("Employee contributions to the scheme are currently 3% and the company contributions are 5% of pensionable salary"). It does also state: "The government has introduced a requirement for employers to automatically enroll employees into a basic level pension scheme, although you will be able to opt out".

I did opt out at the correct time but they lost my form and did not respond to my email.

Hmm, now I'm a bit confused again. Is the following about right, or am I still misunderstanding things?

1. At the point of the TUPE you were opted out of your public sector pension scheme. (Just trying to understand your apparent unconcern at having lost an extremely valuable benefit here.)

2. TUPE/'Fair Deal' conditions then ended on your agreement to accept new terms of employment in Aug 2013. (Not unusual - can happen in public sector to public sector TUPEs too.)

3. At this point Auto-Enrolment kicked in, and you were therefore auto-enrolled into your private sector employer's pension scheme.

4. You opted out from this scheme too; assuming AE did apply, regardless of whether they had lost a form or not, payroll were legally obliged to put you in for the first month. (Again, not a private vs. public sector thing.)

5. At some point payroll found the form and processed your opt out?

6. You are now wanting to opt in.

7. As you opted out before however, you are only being allowed to opt into the basic AE pension...?

w00519772

hyubh wrote: »

OK, makes sense.



Hmm, now I'm a bit confused again. Is the following about right, or am I still misunderstanding things?

1. At the point of the TUPE you were opted out of your public sector pension scheme. (Just trying to understand your apparent unconcern at having lost an extremely valuable benefit here.)

2. TUPE/'Fair Deal' conditions then ended on your agreement to accept new terms of employment in Aug 2013. (Not unusual - can happen in public sector to public sector TUPEs too.)

3. At this point Auto-Enrolment kicked in, and you were therefore auto-enrolled into your private sector employer's pension scheme.

4. You opted out from this scheme too; assuming AE did apply, regardless of whether they had lost a form or not, payroll were legally obliged to put you in for the first month. (Again, not a private vs. public sector thing.)

5. At some point payroll found the form and processed your opt out?

6. You are now wanting to opt in.

7. As you opted out before however, you are only being allowed to opt into the basic AE pension...?

Point one and point two are correct. After point two it goes:

3. Letter received from HR to say you must notify payroll if you want to join the better pension scheme (5% employer contribution) by the end of December. If you do not notify them then you are auto enrolled on the 1% pension scheme.
4. I filled in the form in October 2013 and posted it from home
5. I emailed Payroll on 03/12 to ensure they had received it
6. I emailed Payroll in June 2014 to ask why I was still contributing 1% (and the employer was contributing 1%). They said the employer would not increase the contribution if I increased by contribution

Now please see points a-c in my original post. These are my issues.

hyubh

w00519772 wrote: »

Point one and point two are correct. After point two it goes:

Why do my points 3 and 4 not apply? Were you not allowed to join the scheme referred to in your new contract of employment immediately? Otherwise, surely you must have opted out of it like you had opted out of the (far more generous) public sector scheme previously?

w00519772

You were automatically enrolled into the less generous scheme in January 2014 if you did not respond. If you did respond before January 2014 (as I did), then you were enrolled into the more generous scheme with a start date if August 2013. Hope that makes sense?

hyubh

w00519772 wrote: »

If you did respond before January 2014 (as I did), then you were enrolled into the more generous scheme with a start date if August 2013.

That implies backdating by six months, which I find slightly strange. More to the point - are you saying that yes, you had indeed previously opted out of the more generous scheme? Because I still don't understand, if your contract of employment in Aug 2013 states the pension scheme was currently 3% employee and 5% employer, why that wasn't effective before 2014.

w00519772

hyubh wrote: »

That implies backdating by six months, which I find slightly strange. More to the point - are you saying that yes, you had indeed previously opted out of the more generous scheme? Because I still don't understand, if your contract of employment in Aug 2013 states the pension scheme was currently 3% employee and 5% employer, why that wasn't effective before 2014.

The Contract of Employment was changed in August 2013 and I was no longer entitled to the LGPS (no-one was). At that point Payroll said you have two options:

1) Join the more generous scheme by the end of the year (December 2013) backdated to August 2013 or
2) Do nothing and then you will be enrolled into the less generous scheme in January 2014.

I was enrolled in the less generous scheme (2) as they say they did not receive my form.