EISS Fund

Jason75 · 5 August 2017 at 8:49AM

Hi guys

Looking for your expertise

My previous employer 5 years ago enrolled us into this scheme they call EISS

This was a compulsory scheme unless you applied to opt out, but the managers stood up in front of us all and stated that this scheme was so good, you can't lose out, after 5 years they predicted around a 4K payout blah blah blah.

The way they worked this was to take a portion of my wages they called the 'EISS Sacrifice', then to return some money back via deductions which they called the 'EISS Loan'.

Well the 5 years has run and the statements are in, but all I see now is that I have been scammed.

I've been paying in on a monthly basis and all in all, it looks like I've been losing out big time.

Every month it works out that I have been roughly £40-£50 down on my wages due to this, but i've not worried due to anticipation of the payout itself.

Now that I've got the statements, it would appear that the 'EISS Sacrifice' is a flat rate and that the 'EISS Loan' returned on the deductions has been with interest.

So after the 5 years, the statement looks:

EISS Sacrifice: £7,995.51
Eiss Loan: £5,440.34, then with interest on top, that's +£2,625.39 = £8,065.73

I'm very disappointed that there is no interest on the money paid out via the sacrifice which now only tells me that this was nothing but a lose situation to me.

Does anyone know anything more about what I would class as a rip off scheme, or have they truly screwed me over?

I have all my wage slips, but cannot find the original letter regarding this scheme.

I've tried ringing 'corporate solutions', who deal with this, but they are just fobbing me off with interest, and the woman didn't even know what she was saying and even admitted she was not trained enough to deal with my inquiry, now when I ring, i'm told they are too busy and someone will ring me back which never happens.

I've read up via another thread (started by Patton22, in January of this year),that this is under investigation but from my point of view, I have heard nothing about this.

greatkingrat · 5 August 2017 at 10:37AM

Was the original deduction taken before or after tax? Was any tax deducted from the £8065 you have received back?

It sounds like some sort of salary sacrifice so I suspect that while the cash amount hasn't gone up much, you have probably gained by paying less tax and/or NI than you otherwise would have.

Jason75 · 5 August 2017 at 10:53AM

What I see on my payslips is:

Under Pay and Additions, I see the EISS Sacrifice as a minus figure

Under Deductions, I see EISS Loan as a minus figure

Tax and NI as far as I understand look normal, and then pension

For example:

one payslip shows the following:

Pay and Additions:
Basic: 1436.50
EISS Sacrifice: -145.12
Commision: 14.74

Deductions:
PAYE: 84.40
NI: 76.09
Pension: 11.61
EISS Loan: -98.70

What I don't understand more tho, is how they can apply interest to one statement and not the other?, I've got a screen shot of the summary report which I've put together but unable to post due to not being able to post link as a new member on this forum, (i did have an account but forgot password assigned to an old email address I no longer have access to).