Company pension scheme - sign up now, or never

[Deleted User]

Looking at the enrolment forms for a new member of staff in a private company, it's stated that if you don't join the pension scheme now, you will not be able to do so in the future. This ties in with another case I heard about at the same company whereby a long-standing employee is not being allowed to join the scheme because he didn't do so when he was first employed.


Is this standard practice, or is it uncommon? I'm assuming it's legal?

molerat

My co used to be the same, if you did not join in the first x months you only got another opportunity after a major life event. I assume there are 2 schemes running as they must use auto enrolment.

GunJack

molerat wrote: »

I assume there are 2 schemes running as they must use auto enrolment.

Maybe they should be, but are using the original opt-out as an excuse not to, rather than revisit the process when auto-enrollment came in?

Mr.Saver

With the introduction of auto-enrolment, your employer MUST contribute a minimal of 2% (to be increased to 3% in April) of your qualifying salary if you earn above the trigger threshold (currently 10k/year) and did not opt-out the scheme. If you did opt-out, you will be automatically enrolled again in 3 years, unless you choose to opt out again in 3 years. Your employer also cannot suggest or recommend you to opt out in any way.

If your employer is telling you that you will never be able to join the pension scheme again if you opt out now, and there is no other alternative pension schemes available from them, then this is illegal.

[Deleted User]

Mr.Saver wrote: »

With the introduction of auto-enrolment, your employer MUST contribute a minimal of 2% (to be increased to 3% in April) of your qualifying salary if you earn above the trigger threshold (currently 10k/year) and did not opt-out the scheme. If you did opt-out, you will be automatically enrolled again in 3 years, unless you choose to opt out again in 3 years. Your employer also cannot suggest or recommend you to opt out in any way.

If your employer is telling you that you will never be able to join the pension scheme again if you opt out now, and there is no other alternative pension schemes available from them, then this is illegal.

Thanks for that analysis. The aforementioned long-standing employee currently has a Nest pension, so can the company refuse to enrol him on that basis?

AnotherJoe

johnsmith1890 wrote: »

Thanks for that analysis. The aforementioned long-standing employee currently has a Nest pension, so can the company refuse to enrol him on that basis?

IANAL but I very much doubt it because how would the employer know? That would also mean that anyone who ever previously had a pension wouldnt be eligible. Or that if they stopped paying in to their private pension they then became eligible. Again, how would the employer know. Makes no sense at all.

[Deleted User]

AnotherJoe wrote: »

IANAL but I very much doubt it because how would the employer know? That would also mean that anyone who ever previously had a pension wouldnt be eligible. Or that if they stopped paying in to their private pension they then became eligible. Again, how would the employer know. Makes no sense at all.

Yes, what you say makes sense. I think a further letter to the HR department requesting clarification as to the company's position is required.

Brynsam

johnsmith1890 wrote: »

Thanks for that analysis. The aforementioned long-standing employee currently has a Nest pension, so can the company refuse to enrol him on that basis?

Yes, if the company uses NEST for auto-enrolment for employees who have opted out of 'their' pension scheme - but I'd go along with the idea they just haven't updated the wording since the advent of auto-enrolment. Ask!