Auto enrolment less than 2 years contributions

head_above_water

I am leaving my job to start another one at the end of the month. I have been paying into the work place pension scheme for 21 months. My employer has implied that they will refund my contributions and "claim theirs back" as I am leaving within 2 years. Is this correct as I would have liked to transfer it merge it when i start my new job.

I have been told they will discuss it at my exit interview so I would like to get some facts first, thanks in advance

stevenhp1987

That sounds like an unusual situation to me.

What does your contract say? Are you paying the legal minimum contributions or above that? If the minimum is being paid in by yourself/company they cannot claw it back.

I'm unsure what they can do if you/they are paying over and above the minimum and the contract says they can reclaim it... might need legal advice at that point!

BobQ

You need to state what type of pension it is but it is not uncommon for this to happen if you leave within 2 years (it'is sometimes called "triviality")

Some schemes may allow you to transfer the pension to another scheme but whatever the rules of the scheme you need to work within them. But you need to sort it out before your last day interview.

Do you have information about the pension scheme?

https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme/taking-a-refund

BobQ

stevenhp1987 wrote: »

That sounds like an unusual situation to me.

What does your contract say? Are you paying the legal minimum contributions or above that? If the minimum is being paid in by yourself/company they cannot claw it back.

I'm unsure what they can do if you/they are paying over and above the minimum and the contract says they can reclaim it... might need legal advice at that point!

I do not think the amount of contributions matters. The OP (if I understand correctly) is asking about the employers contributions.

TrustyOven

You'd need to carefully read your employment contract, however I think the situation you are describing is unusual, at least from what I've read of pensions in my limited experience.

This link may provide further assitance:
https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/leaving-your-pension-scheme

I believe there is always (dependend on type of pension) an option to get your money back within 2 years of employment if you leave, this seems to be a choice YOU as an employee make, not your employer. The link above says:

If you have been a member of a workplace pension scheme for less than two years, you may be able to ask for a refund of your contributions. The amount refunded is taxable. If you were a member of a Group Personal Pension (GPP) or Stakeholder Pension Plan, you can't receive a refund of contributions regardless of how long you were a member;

As employers, I don't think they can force you to go down this route. You may want to double-check what you have told them / indicated to them, in case they have misunderstood you and that they believe you want to activate this clause. You may have to tell them explicitly / in a written form that you do not want to have a refund and you want the contributions to stay invested.

hyubh

head_above_water wrote: »

My employer has implied that they will refund my contributions and "claim theirs back" as I am leaving within 2 years.

Public or private sector employer...?

head_above_water

My employer is a private company, the pension is the minimum they have to contribute to the auto enrolment pension. there is nothing about it in my contract but the Scottish widows welcome pack does say about the triviality that someone mentioned. The pack says the employee can ask for contributions to be returned but i can't find anything about the employer contributions.
when i resigned they offered me a pay rise, potential promotion etc to stay and were annoyed when i turned the offer down, so maybe it was just another tactic to get me to stay? I will do some more digging later