Workplace pension deductions not being paid

Ella_fella

So will try and keep this brief, joined a company in July, asked to enrol into their pension scheme from day 1. Deductions were made from my earnings and categorised on my payslip as Legal and General pension for July through to October.

A few days ago I asked HR why I hadn't had a new joiner letter from L and G and what was my policy number - HR said that my pension scheme hasn't been set up as that was to be actioned by a pension advisor which the company uses, the company hadn't paid them and there were no timescales to when this would be actioned.

HR then dropped that the business I work for took over another business a year ago and there were pension payments still missing for the staff that were TUPEd over and I basically had to join the back of the queue as the business were going to deal with those missing pension payments first.

Whole situation is extremely alarming for me, where have my pension payments gone to if not into my pension scheme which doesn't exist? What recourse do I have? Should I be worried?

TIA

El_Torro

I'm not sure whether you should be worried but if I were in your position I certainly would be worried. If your employer is dropping the ball on this what else are they doing wrong?

As for what you should do about it, I thank that is a bit more tricky. Your employer is in the wrong, and is almost certainly breaking the law (even if they subsequently add all the pension payments that are owed to your employee pension I still think they're breaking the law). Even so you haven't been with the company long and if you kick up enough of a stink about it they might decide to just fire you.

Since your HR / Payroll department already knows there's a gap here it might be best in the long run to wait and see what happens. Assuming you want to stay with the company that is.

DRS1

It may or may not help but there is this

Report missing payments to your workplace pension

Note it does say don't report until the contributions are 90 days in arrears.

But maybe your complaint isn't about the contributions as such but about not being enrolled in the pension scheme.

Report that your employer is not complying with their workplace pension duties

But the employer can delay your enrolment by 3 months.

Marcon

But the employer can delay your enrolment by 3 months.

OP has specifically said they asked to be enrolled from day 1 and indeed has had contributions deducted from their pay, so clearly that part of their request has been actioned.

Source: https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/work-out-who-to-put-into-a-pension/postponement

Whole situation is extremely alarming for me, where have my pension payments gone to if not into my pension scheme which doesn't exist? What recourse do I have? Should I be worried?

Of course you're worried, especially when HR come back with a daft (or possibly just honest!) reply like that. What you need to get your head round to save yourself increasing levels of distress is that resolving things isn't going to be quick - but they will be successfully resolved.

You haven't lost your own contributions (they won't have gone anywhere but will be in one of the company's bank accounts) and you will remain entitled to the employer's contributions, even if you leave the company before this is sorted out, or if the company goes bust. Have a look at https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems/what-to-do-if-my-employer-doesnt-pay-my-pension-contributions

Looking at another of your other posts suggests the writing is already on the wall for this job:

https://forums.moneysavingexpert.com/discussion/6684396/how-do-you-handle-the-dreaded-you-dont-seem-happy-at-work-conversation

If that's the case, I wouldn't worry too much about rocking the boat, although keep the matter of a possible reference in mind, even though you've only been there a few months. That said, I don't think even the most spirited rocking is necessarily going to speed things up, and is likely to make you feel worse. It's not fair and it's a right pain, but it's also the reality. You can't control the speed of resolution, but you can at least endeavour (so much easier to say than do…) to recognise that it will be sorted but is going to take time.