Auto-enrolment gotcha

DBdoobydoo

I did some work for a couple of months through an agency & should have had employer contributions for a Nest pension. I did not opt out & on my first payslip I had pension deductions. I didn't notice that I got my pension contributions refunded on the next payslip & that there were no pension deductions on subsequent payslips. It was only some months later when I was doing my self assessment tax return that I noticed this. I contacted the company that had run the payroll for the agency & they explained that as I was past state pension age that I hadn't been autoenrolled into the Nest pension. I complained that I had not opted out & that I should have received the pension contributions from the employer.

As I had no satisfaction from the payroll company I submitted a complaint to the Pensions Ombudsman. Initially they accepted my complaint & it was assigned to a caseworker but subsequently I was informed that my problem was outside their scope:-

"This means that, even if your employer has not met its duties to you, it is not a matter which we can investigate or make a decision about as employers’ compliance with auto enrolment obligations and contributions are matters for the Pensions Regulator."

"Please note that the Pensions Regulator is unable to investigate individual complaints, so they will not look at your particular circumstances and provide a remedy to you."

This means that I have no recourse & no means of redress. It's only a few hundred pounds but it rankles. Does anyone have any idea how I could proceed?

JoeCrystal

I am not sure, to be honest, but if you do not earn enough during the year and you are over the state pension age, then they do not have to contribute. Did you meet the minimum earning limit at the time? It may be the case that employers do not need to contribute at all, although they must allow you to join the pension scheme if you ask to opt-in specifically.

According to my research, they do not have to auto-enrol you into the pension scheme if you are over the state pension age. Did you ask to opt-in to their pension scheme during that working time? If not, I don't see it anyway since the onus is on you rather than the employer.

Sorry but you should pay better attention to your payslips and act on them rather than ignoring them for a few months.

DBdoobydoo

JoeCrystal said:

I am not sure, to be honest, but if you do not earn enough during the year and you are over the state pension age, then they do not have to contribute. Did you meet the minimum earning limit at the time? It may be the case that employers do not need to contribute at all, although they must allow you to join the pension scheme if you ask to opt-in specifically. 

I signed a form to opt into the pension but this wasn't honoured. It is only a few hundred pounds but it was part of my total remuneration package & I should have been paid it. I was surprised that the Pensions Ombudsman couldn't help. It seems a curious omission in the scope of their work. The Pensions Regulator won't be interested as this isn't a systemic problem just an isolated administrative !!!!!! up. I was told that if I had brought it to the attention of the payroll company at the time they would have sorted it out but now it was too late as I was no longer working for the employer.

JoeCrystal

Ah! Then yeah, you should get the contributions then! Maybe it is worth pursuing this through the small claims against the company?

Malthusian

I agree that this seems a case of letter before action, then MoneyClaim (aka small claims court).

Do you have a copy of the opt-in form? I would also be inclined to make a Subject Access Request to the payroll company for your file (in the hope of obtaining proof they received it).

I was told that if I had brought it to the attention of the payroll company at the time they would have sorted it out but now it was too late as I was no longer working for the employer.

Rubbish. If you fail to pay your employees and get rid of them before they complain, it doesn't extinguish their entitlement.

There may potentially be a misunderstanding involved. You said that "you complained that I had not opted out". If that was the complaint it was not surprising that the payroll company knocked you back, for the reasons JoeCrystal gave. The crucial fact is that you opted in.

Andy_L

DBdoobydoo said:

I did some work for a couple of months through an agency & should have had employer contributions for a Nest pension. I did not opt out & on my first payslip I had pension deductions. I didn't notice that I got my pension contributions refunded on the next payslip & that there were no pension deductions on subsequent payslips. It was only some months later when I was doing my self assessment tax return that I noticed this. I contacted the company that had run the payroll for the agency & they explained that as I was past state pension age that I hadn't been autoenrolled into the Nest pension. I complained that I had not opted out & that I should have received the pension contributions from the employer.

They are correct:

"Your employer must automatically enrol you into a pension scheme and make contributions to your pension if all of the following apply:

you’re classed as a ‘worker’

you’re aged between 22 and State Pension age

you earn at least £10,000 per year

you usually (‘ordinarily’) work in the UK (read the detailed guidance if you’re not sure)"

https://www.gov.uk/workplace-pensions/joining-a-workplace-pension