Pension changed from pensionable earnings scheme to qualified earnings query

alstorey

Hi,

I signed up for my pension in 2012, the pension was based on basic income (pensionable earnings) there for based on my full salary excluding any bonuses and with no upper cap.

In 2019, we changed to the auto enrolement pension system.. I was told the 5% company match would remain with my original terms.

Recently I noticed the contributions were not matching 5%.. After investigation, it appears the contributions have been based on the qualified earnings scheme (earnings between £6,240 and £50,270).

I am discussing this with my employer but I am getting the impression it may be a difficult task to get them to stand by the original terms.. I know some other employees that were on the original pension have got the original terms but they are higher up the ladder.

Do I have any legal standing with this, can they just say no?

I believe this could impact my pension fund significantly, I am already at the £50,270 cap and I am 37.. So any potential salary increases would not increase contributions to my pension. Over the 31 years I have left to work, this will no doubt add up.

Thanks

Alan

Marcon

alstorey said:

Hi,

I signed up for my pension in 2012, the pension was based on basic income (pensionable earnings) there for based on my full salary excluding any bonuses and with no upper cap.

In 2019, we changed to the auto enrolement pension system.. I was told the 5% company match would remain with my original terms.

Recently I noticed the contributions were not matching 5%.. After investigation, it appears the contributions have been based on the qualified earnings scheme (earnings between £6,240 and £50,270).

I am discussing this with my employer but I am getting the impression it may be a difficult task to get them to stand by the original terms.. I know some other employees that were on the original pension have got the original terms but they are higher up the ladder.

Do I have any legal standing with this, can they just say no?

I believe this could impact my pension fund significantly, I am already at the £50,270 cap and I am 37.. So any potential salary increases would not increase contributions to my pension. Over the 31 years I have left to work, this will no doubt add up.

Thanks

Alan

The main problem you're likely to have is the length of time it's taken you to spot and question the issue. The fact you continued to work for the employer without flagging your concern could suggest you accepted the change - BUT if you have written confirmation of the original terms of employment, and written confirmation that all that was changing was the destination of pension contributions, that would strengthen your hand. You say you are 'discussing this' - what has your employer said so far?

alstorey

Hi

Thanks for you reply..

I am still waiting to speak to one of the directors.. I was dealing with one of our accountants until now.

I have the original company policy form which stated the 5% contibution match and full basic salary basis. This is all I ever signed, I never signed a revised version that stated any changes such as partial salary basis..

I seen online that my employer should have discussed these changes before moving my pension to a new provider, this never happened.. I would have refused this if I had of known back then. They just did it and hoped no one noticed..

Marcon

alstorey said:

Hi

Thanks for you reply..

I am still waiting to speak to one of the directors.. I was dealing with one of our accountants until now.

I have the original company policy form which stated the 5% contibution match and full basic salary basis. This is all I ever signed, I never signed a revised version that stated any changes such as partial salary basis..

I seen online that my employer should have discussed these changes before moving my pension to a new provider, this never happened.. I would have refused this if I had of known back then. They just did it and hoped no one noticed..

You wouldn't have been able to refuse a change of provider if that's what your employer decided to do, although proper consultation should have been followed - but it's not the new provider that matters, it's the breach of the terms of your original contract without consultation (never mind agreement!) that needs to be the focus of your attention.

Please keep this thread updated - although it would be lovely to think that the update is that you get the promised contributions based on full salary.