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Government Pension Scheme
cptruff
Posts: 5 Forumite
Hi,
My company has enrolled me into its pension scheme. The pension scheme is a religious one which I don't agree with.
My question is, am I allowed to change scheme and my employer still has to pay into it? Or am I stuck with the one that my employer has chosen?
Thanks in advance.
My company has enrolled me into its pension scheme. The pension scheme is a religious one which I don't agree with.
My question is, am I allowed to change scheme and my employer still has to pay into it? Or am I stuck with the one that my employer has chosen?
Thanks in advance.
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Comments
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Hi,
My company has enrolled me into its pension scheme. The pension scheme is a religious one which I don't agree with.
My question is, am I allowed to change scheme and my employer still has to pay into it? Or am I stuck with the one that my employer has chosen?
Thanks in advance.
I didn't know there was such a thing as a religious pension scheme. Why do you think it's a "religious one"?0 -
Hi
Usually you have to take whichever one they offer. You can ask if they will will pay into another, however be prepared for them to say no. It's highly unlikely in my opinion. Most company pension schemes are a benefit, if you don't want it then opt out and make your own arrangements.
I appreciate the issue. If they won't pay into another then it's down to whether your principles override the benefit provided.0 -
You can have any pension scheme you want but your employer only has to pay into their scheme. A few companies may pay into a scheme chosen by the employee but the vast majority dont.0
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You don't have to pay into the company scheme and can make your own arrangements.
But you'd most likely be giving up free money in the form of your employer's contributions.0 -
Your employer can choose the pension scheme that they offer provided it meets the auto-enrolment requirements. It's uncommon but permitted for an employer to pay into schemes other than the one they have selected since this increases their administration costs. They might instead agree to allow transfers out every few years.
In addition or instead you can open any number of pension schemes on your own if you like.
Usually it'll be best to pay into the work scheme enough to get the maximum available amount of employer matching of your contributions. Then you can do more on top of that in one of your own if you like
It's normally possible to transfer out of a pension scheme when you leave the job but there are exceptions, like NEST or a defined benefit (final or average salary say) schemes where it's not so easy and can cost a few thousand Pounds.0 -
Because the scheme is called '[religion name] pension scheme'0
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Firstly, you may find that the naming is just a coincidence. Christian, for instance, is a common first and last name, so it may not be religious.
Secondly, of course you are free to object, but bear in mind that investing in a "religious" scheme doesn't necessarily endorse that religion. Sharia-compliant pension funds, for instance, are those which do not invest in things like alcohol, weapons, tobacco and gambling. It doesn't necessarily mean that they fund the particular religion concerned in any way - just that it doesn't invest in certain controversial assets that individuals may object to, spiritually or morally.
Perhaps the easiest way for you to allay your concerns is to find out exactly what your scheme invests in. If you are happy that the funds on offer are reasonably secular, you can participate in the pension scheme and receive lovely free money from your employer, safe in the knowledge that you are not financially supporting or endorsing a religion you disagree with.I am a Technical Analyst at a third-party pension administration company. My job is to interpret rules and legislation and provide technical guidance, but I am not a lawyer or a qualified advisor of any kind and anything I say on these boards is my opinion only.0 -
Yes, I'm in the UK0
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PensionTech wrote: »Firstly, you may find that the naming is just a coincidence. Christian, for instance, is a common first and last name, so it may not be religious.
Secondly, of course you are free to object, but bear in mind that investing in a "religious" scheme doesn't necessarily endorse that religion. Sharia-compliant pension funds, for instance, are those which do not invest in things like alcohol, weapons, tobacco and gambling. It doesn't necessarily mean that they fund the particular religion concerned in any way - just that it doesn't invest in certain controversial assets that individuals may object to, spiritually or morally.
Perhaps the easiest way for you to allay your concerns is to find out exactly what your scheme invests in. If you are happy that the funds on offer are reasonably secular, you can participate in the pension scheme and receive lovely free money from your employer, safe in the knowledge that you are not financially supporting or endorsing a religion you disagree with.
Thank you for that. I'll find out exactly what it invests in and make a decision from there. As you said, it's free money I'd prefer not to give up!
thanks again.0
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