Pensions document wording Re: employer contribution

Strummer22

Hey all,

My company recently transferred my pension to Blackrock, and will all the bumf they sent me about it was the terms of the defined contribution scheme I'm on. The contributions are clearly stated as being based on 'length of service', with established employees with up to 5 years service contributing 5%, matched by the employer, and 5-10 years service contributing 5% with 7.5% from the employer.

I've been with the company since June 2009, but only joined the company pension scheme in March 2011. My pension has only been receiving 5% employer contributions even though my length of service is 6 years 8 months. My employer says their contributions will go up to 7.5% this month as that's when I'll have been in the pension scheme for 5 years. But then clearly they are saying the contributions are based on length of time in the pension scheme, not 'length of service'. I looked through the T&Cs of the scheme and cannot find length of service defined anywhere.

Do you think I should pursue this further or am I likely to sour my relationship with my employer? I'm about to start getting their 7.5% contributions anyway...

bigadaj

It sounds as though you are just working from documentation and haven't queried this with them.

I would raise this as a query its your accounts or her department, pointing out the apparent contradiction. They may agree with you or may not, worth trying but I wouldn't press it too far if they don't accept your position.

Strummer22

bigadaj wrote: »

It sounds as though you are just working from documentation and haven't queried this with them.

No, I have - the response from HR was essentially that the employer contributions will go up to 7.5% this month as that's when I'll have been in the pension scheme for 5 years.

bigadaj wrote: »

I would raise this as a query its your accounts or her department, pointing out the apparent contradiction. They may agree with you or may not, worth trying but I wouldn't press it too far if they don't accept your position.

I asked whether they had seen anything in the terms making this distinction between service/time in pension scheme, got a non-committal 'I'll look into it'.

I think I may ask my co-workers if any of them are in a similar position to me. Of course, had I been as financially savvy a few years ago as I am now, I'd have gotten onto the pension scheme as soon as my probation finished and this would be a non-issue.

mania112

Based on the reason for the increase in contribution being loyalty to your employer i would say it SHOULD be based from the date of your permanent contract (i,e, after probationary period).

But that's not how it seems to be operating for you.

Then again, why was it so long between your start date and pension starting? Did they offer and you initially declined it?

Strummer22

mania112 wrote: »

Then again, why was it so long between your start date and pension starting? Did they offer and you initially declined it?

Yep.

"had I been as financially savvy a few years ago as I am now, I'd have gotten onto the pension scheme as soon as my probation finished and this would be a non-issue."

I liked having more money in my pay slip :undecided

Shimrod

I would take 'length of service' as being the period of time you have worked for the company.

Have another look through the handbook to see if it defines 'service' as a term in its own right. Possibly it defines 'service' as shorthand for 'pensionable service' which would then fit with what the company is saying.