Kicked out of the pension scheme for taking on a permanent contract!

gazza26 · 10 November 2023 at 2:54PM

I don't know if anyone could clarify for me what the situation should be.
I have worked for the same employer for the last 4 years under a bank contract. I have now taken on a permanent contract with the same employer with no gap in service. Its only 12 hours a week but I work a lot of extra. However, they told the auto enrolment pension fund that they will be making no more contributions to the fund. I queried this with HT and they said yes as new contract new payrole number, new pension fund after three months. Which wouldn't matter so much but the timing is slap bag in the middle of the financial year and I won't meet the low criteria for either part of the year for their contributions, although I would as a whole year. I am still the same person with the same employer and same National Insurance number. Can they do this?

Thanking you in advance for any advice anyone has for me.

Pat38493 · 10 November 2023 at 3:16PM

My guess is that yes they can do this legally. However they don't have to do it - they could let you re-enrol immediately. Whether these are the actions of a good employer is up to you to decide.

LHW99 · 10 November 2023 at 4:30PM

I think you can ask to join, and they have to let you (ie let you pay in) but if your equivalent annual salary for the new post is low, they may not have to pay an employers' contribution

https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-if-you-earn-10000-a-year-or-less

Grumpy_chap · 10 November 2023 at 5:23PM

gazza26 said:

I don't know if anyone could clarify for me what the situation should be.
I have worked for the same employer for the last 4 years under a bank contract. I have now taken on a permanent contract with the same employer with no gap in service. Its only 12 hours a week but I work a lot of extra. However, they told the auto enrolment pension fund that they will be making no more contributions to the fund. I queried this with HT and they said yes as new contract new payrole number, new pension fund after three months. Which wouldn't matter so much but the timing is slap bag in the middle of the financial year and I won't meet the low criteria for either part of the year for their contributions, although I would as a whole year. I am still the same person with the same employer and same National Insurance number. Can they do this?

Thanking you in advance for any advice anyone has for me.

Just to be clear, is the "bank" role direct with the same employer, or is there an agency or other intermediary (umbrella company) in between?

gazza26 · 10 November 2023 at 5:58PM

Yes the Bank role was directly with the same employer at the same premises, no agency or any other company involved.

MeteredOut · 10 November 2023 at 6:01PM

That seems weird. So just an internal transfer within the same legal entity? Same PAYE reference number on your payslip?

For example, some banks have their retail, commercial, investment, international etc sectors in different legal entities.

gazza26 · 10 November 2023 at 6:22PM

I work in Care and do the exact same job in the same building, before and after. I don't think, the company would have different sectors of employees in this instance, they are more likely to clump us together for working in a particular "home", which hasn't changed. They have told me my payroll number will change. But obviously my National Insurance number won't and that what identifies me as me for tax purposes.

DietIrnBru · 10 November 2023 at 7:20PM

They probably can do it, as common sense agrees with you that same employer should just do the good chap thing and continue the pension. However, you’re probably dealing with some HR thing that will inevitably require you bash your head against a wall before they think outside the box. Not ideal - could you make pension contributions via standing order for a few months? Not ideal I know given no employer contribution. I do agency shifts outside my substantive post and they use Peoples Pension which does allow direct debit contributions and lump sum payments.

Upside - congrats on your substantive post - means some sickness coverage and more rights than if you were bank only.

Albermarle · 10 November 2023 at 7:31PM

However, you’re probably dealing with some HR thing that will inevitably require you bash your head against a wall before they think outside the box.

Maybe the computer says no !

SouthCoastBoy · 10 November 2023 at 7:33PM

It's not great is it. I changed employer and had to wait 3 mths before pensions contributions kicked in, nearly didn't take job because of poor pension, but bit the bullet as needed a change

caeler · 10 November 2023 at 8:19PM

Under auto enrolment rules an employer can choose to defer joining for the first 3 months of employment. I’m surprised they’ve done this with you if you have continuous service. I also thought you could ask to join before 3 months and the deferment must be confirmed to you in writing. But I’m a bit rusty on auto enrolment. Maybe put your complaint in writing and see if it reaches somebody who will take your concern seriously.