Can i change workplace pension schemes?

Loob82

My company offers two pension schemes, one is the auto enrollment which makes me pay in 5% and they pay in 3%, this is what i am currently on.  They also have another scheme in which i would contribute 3% and they would 5%, all new employees are put onto this better scheme.  I have been at the company for over 20 years now and feel like i'm being penalised on the lesser pension schemes and despite raising this with them they are reluctant to transfer me over? 

I was wondering where i stand with this and if there is anything i can do about it? 

Many thanks 

Albermarle

Presumably all you can do is ask to be transferred as it is unfair that you remain in the other scheme.
If they say no you will probably have to accept or leave .
I thought under current minimum auto enrolment rules the employees has to contribute minimum 5% , but maybe it is OK as long as it is 8% in total ?
Someone better informed about AE should be along soon to answer that .

ReecesWaffle

I have also been thinking this so commenting to return later hopefully for an answer! 🙃

HappyHarry

Albermarle said:

Presumably all you can do is ask to be transferred as it is unfair that you remain in the other scheme.
If they say no you will probably have to accept or leave .
I thought under current minimum auto enrolment rules the employees has to contribute minimum 5% , but maybe it is OK as long as it is 8% in total ?
Someone better informed about AE should be along soon to answer that .

It has to be a total minimum of 8% (or various other permutations) of which the employer must contribute 3%.
e.g. If the employer contributes 4%, then the employee / tax relief only needs to make up another 4%. If the employer contributes 16%, there is no need for the employee to contribute anything.

Linton

Employers can set up whatever pension schemes they wants but must as a minimum offer a 3% employer 5% employee pension.  So you have no rights here other than the anti-discrimination ones ieg you can show you are being denied access to the better option because of gender, ethnicity etc.

I suggest you discuss the issue with the person/department in your company who looks after pensions.   If  this doesnt help raise the issue with your manager - if your manager doesnt want a unhappy member of staff he/she may be able to get the company to review the situation.

MEM62

Loob82 said:

I have been at the company for over 20 years now and feel like i'm being penalised on the lesser pension schemes and despite raising this with them they are reluctant to transfer me over? 

What makes you think that NEST is less worthwhile than the alternative scheme?  
Also, you commenced work with your employer years before Auto Enrolment was introduced so why did you not join the pension scheme until Auto Enrolment was introduced?   

Marcon

Loob82 said:

My company offers two pension schemes, one is the auto enrollment which makes me pay in 5% and they pay in 3%, this is what i am currently on.  They also have another scheme in which i would contribute 3% and they would 5%, all new employees are put onto this better scheme.  I have been at the company for over 20 years now and feel like i'm being penalised on the lesser pension schemes and despite raising this with them they are reluctant to transfer me over? 

I was wondering where i stand with this and if there is anything i can do about it? 

Many thanks 

Something doesn't sound quite right here. Are you sure there's nothing 'special' about the scheme you are in (e.g. some sort of underpin or guarantee) which would make a move to the other scheme a bad idea from your point of view? What exactly did the company say when you asked to move to the newer scheme?

Otherwise....is the company having trouble recruiting? Have they lowered salaries for new hires?

squirrelpie

Linton said:

So you have no rights here other than the anti-discrimination ones ieg you can show you are being denied access to the better option because of gender, ethnicity etc.

I don't think Loob82 would need to show discrimination on grounds of gender or ethnicity. Two possibilities suggest themselves. (a) if there's anybody else doing a similar job with comparable terms except for the pension. (b) if there's age discrimination going on, since new employees may well be younger.

But I agree with the other things you said.

xylophone

You say that you have been with the company for over twenty years. - since around 2000 say?
Auto enrolment was introduced in stages from around 2012 - are you saying that there was no pension scheme on offer before 2012 or that you didn't join it?

You say that all new joiners are enrolled in a more generous pension scheme - this seems rather unusual.

What is the name of the scheme you are in? And the new  joiner one?

Have you obtained a state pension forecast?
https://www.gov.uk/check-state-pension

MEM62

TVAS said:

Do so more homework and return with the facts then we can help you.  

Looks like the OP has disengaged.  Another one-post wonder.    

cloud_dog

I wish people would hold back a little sometimes, not everyone is as aware/comfortable/knowledgeable on pensions, or even pays much attention to documents sent to them regarding pension changes.

It could be as simple as the OP has been employed by the same company for 20+ years, was originally in a DB scheme, which was closed and they were auto-enrolled in to the new scheme when it was introduced.  Subsequent to that a revised scheme has been offered. 

I appreciate this is all conjecture but, hopefully the OP will not feel put off to come back and provide further information.