Auto-enrolment shambles

walesrob · 17 February 2019 at 11:22AM

I did have a workplace pension provided by my current employer, but I opted-out last year. Come last pay period, I was automatically opted back in without any prior notification, and deducted £49. I then had to jump through hoops to get opted out again.

How can this be allowed to happen? Surely it should be an opt-in choice, and if I opt out 12 months ago, why should I have to go through all the nonsense again just months later? It's wrong on many levels.

Many colleagues in the company I work for (a major UK retailer) have had the same shock of having this pension money taken without their prior consent. Some of us can't afford to suddenly have £50 taken from the monthly pay without making other plans to cover it.

Just to add insult to injury, I had a letter from the pension provider a WEEK after pay to say I am enrolled. Again.

Slinky · 17 February 2019 at 3:47PM

I can't say why your employer hasn't told you in advance but it's something that will happen every 3 years. I'm an employer and I've just received this email:

We’re writing to you as we understand that you are setting up re-enrolment for XXX Ltd or helping them to do so. If this is not the case, then please forward this email to a representative of XXX Ltd so they can let us know who to contact instead.

0?ui=2&ik=d68f31887f&attid=0.6&permmsgid=msg-f:1624623951917771445&th=168bd2e06ba66ab5&view=fimg&sz=s0-l75-ft&attbid=ANGjdJ8n0Jv4Vg7O6u3yxUCOPKA6JFfTCmAPzDabo7nwd6Waet0IaRvJ5F_OKWS6wGGPwQ6XNfOasJNYb-JDvhRxZtg8AWsCA83R2hDlXdivD9JwIRqvaoNthdN0BNI&disp=emb

What is re-enrolment?

•

choose your re-enrolment date

•

assess your staff to see who needs to be put back into a pension scheme

•

write to those staff that you have put back into a pension scheme

•

complete your re-declaration of compliance before your re-declaration deadline.

Further information

For further information and tools to help you carry out your re-enrolment duties, including our essential guide, visit our website. Act now to make sure you meet your duties on time.
What is re-enrolment?

Every three years an employer must put certain staff back into a pension scheme. This is known as ‘re-enrolment’. This is an employer’s legal duty and you must let us know you have done it by completing and submitting a re-declaration of compliance.

Paul_Herring · 17 February 2019 at 10:23PM

Surely it should be an opt-in choice, and if I opt out 12 months ago, why should I have to go through all the nonsense again just months later? It's wrong on many levels.

It was specifically designed as an opt-out system, with re-enrolment scheduled 3 years after any opt-out, unless specifically opted-out again at that time.

Any more frequently than 3 years (as you appear to be indicating) sounds like an administrative error on behalf of your company. You need to sort this out with payroll in the first instance.

Patrick_David · 5 March 2019 at 11:16AM

HELP would be much appreciated.
I joined a company Nov 2017. Because of my age and low wage I opted out of the pension.
I November I was auto-enrolled. Spoke to the pension department; they told me I would be reimbursed. I wasn't. Instead they took the money again in December.
Phoned again and was assured I was opted out but the contribution was deducted again in January.
I've lost nearly a £100 - all my overtime wiped out.
I've been told it's just the law.
Can the employer/pensions company auto-deduct before three years or not?
I've also just received notification that due to 'legal' requirements I may have pension contributions deducted in the future if I earn over £833 a month - even though I have opted out of the pension scheme.
Is this correct?

Paul_Herring · 5 March 2019 at 11:19AM

If you want to opt out, your employer MUST opt you out - they cannot simply force you to enroll.

The following may help:

https://www.thepensionsregulator.gov.uk/en/business-advisers/automatic-enrolment-guide-for-business-advisers/7-assessing-and-enrolling-staff/opting-out

https://support.autoenrolment.co.uk/employee-support-and-faqs/why-am-i-unable-to-opt-out

Patrick_David · 5 March 2019 at 11:34AM

Thank you so much.
The problem is I did opt-out; they auto-enrolled me before three years; I complained and they told me I had opted out but it didn't show on the system the next month. I did the same thing and the same thing happened again the next month - so that's three month's of erroneous contributions to Legal and General who seem quite happy to take my money for someone else's pension pot.
The company says it's not interested, even though in was their parlous staff management system that has resulted in me losing my wages.
Now they are saying if I earn over £833 a month I could be forced to contribute again.
Emailed my employer this morning and they've just referred me to a load of documents on the intranet that I cannot understand.
I work for a major retailer that claims we 'own' the company. What a joke.
All I want from them is the money I have earned - don't even care about so-called bonuses.
Very upset.

Paul_Herring · 5 March 2019 at 11:41AM

take my money for someone else's pension pot.

I'd rather hope it was going into your own pension pot.

Patrick_David · 5 March 2019 at 12:08PM

At 57, earning £8.14 an hour I have barely enough to live until retirement. To get any benefit at all from this pension I'd probably have to contribute 50% of my monthly earnings which would not work, would it?

thelem · 11 March 2019 at 4:06PM

If you barely have enough to live now, how will you live after retirement?

If you save £50 per month for 10 years (until you are 67) that comes to £6,000. Your employer and the government will match that making a £12,000 pension pot. You can check how much that might be worth as a pension using the calculator at https://www.moneyadviceservice.org.uk/en/tools/annuities - when I put your numbers in it said £650 per year, but that will vary depending on the options you choose.

penners324 · 16 May 2019 at 1:44PM

It's not someone else's pension pot, it's yours.
And your employer would have added an amout in as well.
If you're paying in about £50 a month and then opted out, you'd only get an extra £30 in your take home pay give paye and ni contributions.

atush · 29 May 2019 at 10:56PM

walesrob wrote: »

I did have a workplace pension provided by my current employer, but I opted-out last year. Come last pay period, I was automatically opted back in without any prior notification, and deducted £49. I then had to jump through hoops to get opted out again.

How can this be allowed to happen? Surely it should be an opt-in choice, and if I opt out 12 months ago, why should I have to go through all the nonsense again just months later? It's wrong on many levels.

Many colleagues in the company I work for (a major UK retailer) have had the same shock of having this pension money taken without their prior consent. Some of us can't afford to suddenly have £50 taken from the monthly pay without making other plans to cover it.

Just to add insult to injury, I had a letter from the pension provider a WEEK after pay to say I am enrolled. Again.

Hopefully your employers were trying to protect you from your own stupidity. Where you throw away FREE MONEY by opting out.

Madness

Auto-enrolment shambles

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free