Pension query - missing employer contribution

louisas069

Hi everyone.

Almost two years ago I started a new job. 3 months later I was auto-enrolled on to their pension. My first contribution (and theirs) was taken that month and paid in, fine.

Next month the employer changed provider and everyone was moved across to the new provider, myself included. From there on I continued to pay into this pension and everything has been fine ever since.

The problem has recently arisen that out of the blue I received a refund for my single contribution in to that first pension. They said that at the time they opted out of the pension since it was within its 30 day opening period and the money (both contributions) was sent back to the employer.

This seems odd but barely worth worrying about - my issue is that they are refusing to give me their contribution that I missed out on (now almost two years ago). If I had known of their plans to cancel the policy then I would have requested that contribution be paid into the new scheme.

Any idea where I stand with this? Much appreciated.

Marcon

louisas069 said:

Hi everyone.

Almost two years ago I started a new job. 3 months later I was auto-enrolled on to their pension. My first contribution (and theirs) was taken that month and paid in, fine.

Next month the employer changed provider and everyone was moved across to the new provider, myself included. From there on I continued to pay into this pension and everything has been fine ever since.

The problem has recently arisen that out of the blue I received a refund for my single contribution in to that first pension. They said that at the time they opted out of the pension since it was within its 30 day opening period and the money (both contributions) was sent back to the employer.

This seems odd but barely worth worrying about - my issue is that they are refusing to give me their contribution that I missed out on (now almost two years ago). If I had known of their plans to cancel the policy then I would have requested that contribution be paid into the new scheme.

Any idea where I stand with this? Much appreciated.

On what grounds are they refusing? The longest an employer can postpone auto-enrolment is 3 months, so provided you pay your bit (and clearly you did), they need to pay employer contributions from that point on.

I'd go back and point that out to them, making it clear you are happy to have your personal contribution for the 'missing month' paid to the new scheme provided they pay the required employer contribution.

That said, I'd hold fire just a little longer - until you are through the 'employed at least two years' mark, at which point your employment protections become a great deal stronger.

louisas069

Thanks macron. To be clear I was auto enrolled after 3 months of joining as expected and both contributions were paid no problem in that first and only month. My employer then opted me out again within the 30 days without ever mentioning it. The first I knew was almost 2 years later when I received only my contribution back. I have a statement from the pension to show that they had paid the money. I can’t see why they went to this length of paying in only to cancel it all again anyway. They may as well have just left it.

On what grounds are they holding back the money? Your guess is as good as mine. For me they have a legal obligation to pay it back since it’s in my contract. I have already explained that I don’t even expect the cash and would be happy with the money paid in to the new scheme. The same as I would have been happy doing the same at the time.

you’re right about the two year thing. I will make a final complaint and then hold off a few more weeks before contacting the onbudsman. By which time I will have been employed two years.

Thank you again.

Marcon

louisas069 said:

Thanks macron. To be clear I was auto enrolled after 3 months of joining as expected and both contributions were paid no problem in that first and only month. My employer then opted me out again within the 30 days without ever mentioning it. The first I knew was almost 2 years later when I received only my contribution back. I have a statement from the pension to show that they had paid the money. I can’t see why they went to this length of paying in only to cancel it all again anyway. They may as well have just left it.

On what grounds are they holding back the money? Your guess is as good as mine. For me they have a legal obligation to pay it back since it’s in my contract. I have already explained that I don’t even expect the cash and would be happy with the money paid in to the new scheme. The same as I would have been happy doing the same at the time.

you’re right about the two year thing. I will make a final complaint and then hold off a few more weeks before contacting the onbudsman. By which time I will have been employed two years.

Thank you again.

The employer can't opt you out (OK, I know they have, but that certainly isn't in the legislation!). That's one for the Pensions Regulator (not an ombudsman): https://www.gov.uk/employers-workplace-pensions-rules#:~:text=Your%20employer%20must%20automatically%20enrol,Your%20employer%20cannot%20refuse.