Any advice? Pension scheme claiming 10 years contributions/interest though opted out?

rjs200

Hi

I'm hoping somebody has an opinion on my situation/ any advice on how to respond initially and then proceed over the medium term.

My apologies for the length of this post- I've summarised my issue followed by my questions so people can avoid reading the detailed story.

SUMMARY OF SITUATION
I only started paying contributions January 2015 having opted out of the existing pension scheme upon starting with my employer in August 2002. In October 2008 I had considered opting back in (for the first time since August 2002): but at that time the scheme managers said they could find no service nor pension information for me: HR simply responded that- if I had opted out, all I needed to do was opt back in and bounced me back to the pension managers. Neither the pension managers nor the HR department at that time communicated to me that I might need to complete a formal opt out form (again). The scheme managers sent me election forms but in the end I did not submit. In January 2016- after 12 months of contributions both from myself and my employer (the only contributions in my 14 years of service)- I was contacted by scheme managers who said they could not elect me to the scheme due to various pieces of missing information from my employers. I queried this as I opted out in 2002 and completed the opt-in form in January 2015, and had been paying contributions monthly from my salary ever since. In a meeting with employer HR it has transpired that the pension managers are now saying I should have signed an opt-out form in late 2004 and that myself and my employer now owe them back dated contributions for 10 years 3 months . I'm at a complete loss as how to respond: a rough calculation would put this figure as 1.5x my current annual salary.


QUESTIONS

1. If you have never paid any contributions (for 13 years) then elect to what you believe is opting back into a scheme (you believe you opted out of) is it legal for the pension company to then demand 10 years 3 months of 'backdated' contributions from both you and your employer?
2. Is not the fact that no pension contributions were made by my Employer nor deducted from my salary- for 13 years- clear evidence that I did not want to participate in a pension scheme. No annual statements/ no deductions appearing in my monthly salary slip?
3. Is not the fact that I contacted both HR and the pension managers in 2008- clearly stating that I had opted out in 2002- further proof of this earlier opt out?
4. Also- in October 2008- should not either/ both the pension managers or my employers HR not flagged up the fact that- at that time they had no information on me so if I believed I had opted out I needed to compete a specific form (or provide one)? Neither of them provided me this information October 2008- and at worst I would have been in the same situation I am now but only 8 years earlier/ with far less to pay...
5. If there is a liability is it not the University who should pay for the error that TPS claim has taken place?

DETAILED STORY
In late 2002 I joined a northern university (ex poly) as a temporary research assistant on a small salary. I opted out of the pension scheme in place for that position (after noticing the deductions in my salary statement). I didn't give it much thought at the time other than emailing my HR to confirm I did not want to be a part of the existing pension scheme. I received an email confirmation at the time in 2002 I absolutely recall that. But I don't have that 2002 email now. I have changed jobs three times whilst working for this university and have had many email prunes over the subsequent 14 years. It was also confirmed by HR at this time that I could elect to opt back in at any time in the future. I cannot remember if I signed an official form or not (other than the email opt out) but I remember that after the one month's salary contributions they ceased and that deducted months contribution was refunded. So I am assuming I must have done for my membership of the scheme to have been halted.

In late 2004 I became a permanent member of the teaching staff. This was considered 'continuous employment' with terms and conditions remaining the same as my prior temporary research post. There was never any communication about pensions and I thought nothing of it as I had never made any contributions (I'd opted out in 2002) and this was a continuing position with same terms and conditions (just a slightly higher salary point). No pension deductions were made from my salary nor contributions from my employer. As with the previous research post.

In late 2008 I seriously considered opting back into the existing pension scheme. I contacted my HR who said if I had previously opted out I needed to opt back in- and proceeded to then direct me to the schemes managers. The scheme is the Teachers Pension Scheme which ex-Polytechnics use (as opposed to the University staff scheme). So I contacted TP scheme managers and received an email (which I still have) saying that no information nor details of my service record nor pension history could be found...but that if I had previously opted out I should complete a form to elect back in. I went back to HR about this- the issue of TPS having no information about me- but they just repeated the mantra that if I had opted out I needed to opt back in. In then end- partly because of all this hassle- I decided not to submit the form. To repeat at this stage absolutely no pension contributions had been taken other than that very first month's salary.

In January 2015 I finally decided to bite the bullet and decided to opt back in. I completed the requisite forms and passed them onto the HR pensions team. From the January 2015 salary run I have had employee pension contributions deducted and my employer has been making employer contributions. However I received no welcome pack nor information from TPS. I tried for several months to elicit this and eventually was met with a request for the original opt out form. I passed this onto HR along with my incredulity that instead of providing me with scheme information/ documentation they were asking for a form I submitted 15 years previously and asking HR to did this form out and provide it to them. I was told that they would sort it and get back to me. I heard nothing more from TPS nor HR and pension contributions continued to be deducted from my salary. I 'assumed' everything had been sorted between the two organisations.

In January 2016 I received online communication from TPS managers (I have a login, reference number and account with TPS online) saying they could not elect me from the scheme because three items of information had not been provided by my employers (they had not stamped nor addressed my election application; they had not provided an effective date of election; they had not provided the opt out form). I queried all of this with HR- given my opt out right at the start of my university service/ that fact that no contributions had been made by me or employer until I elected to opt back in January 2015/ that my service was deemed continuous from the first appointment/ that deductions had been taken once I signed and submitted the election form in January 2015.

Today April 14 2016 I have had the first formal meeting with HR.This is what they said:

1. That it transpires the original scheme I opted out of in 2002 was the Local Government pension scheme that covered research posts at that time;
2. That in any case they have no evidence I did opt out (though they admit that 1 months contributions were taken and then stopped);
3. That when I joined the permanent teaching staff in October 2004 I should have formally opted of the scheme that ran for lecturing positions- namely the Teachers Pension Scheme- despite nothing being communicated to me at the time of the need to consider whether I wanted to be a part of this different scheme or not and- more to the point no contributions having ever been deducted from my salary or made by the university on my behalf. If deductions had been made in October 2004 I would have done what I had done in September 2002 and asked HR why they had been taken and then opted out (again).
4. That in communications with TPS they are now demanding that both the university and myself pay backdated contributions to October 2004: 10 years and 3 months!
5. The main HR person (there were three of them) said repeatedly that "you should have completed a form back in 2004": this seems to be their line- that if 'we' are liable for the back dated contributions then they don't want to pay that element ascribed to myself. Even though I opted out of the existing pension scheme at my entry to university service and never paid a penny in contributions until I completed the forms to opt back in; and that in October 2008 I had discussions with them where they never raised any issue about prior opting out.

It's so frustrating! All I wanted was to opt back into the TPS and get 17 years of contributions in before I retired.

If anyone has any suggestions on what is/ is not feasible I'd greatly appreciate it.