Pension on a Fixed Term Contract

[SuperSaint]

I am starting a new job soon on a FTC of just over a year.

The contract I have been sent says "This post is ineligible for the (company name) pension scheme"

I have had a look online and it seems that companies cannot treat employees on fixed term contracts less favourably than those on permanent contracts except on "objective grounds". Most websites seem to state that I should have access to the pension scheme.

Does anyone know if the contract is correct and what would count as "objective grounds"?

Thank you for any help.

[maggiethemagpie]

You should be able to join the pension scheme on a fixed term contract. Otherwise it is discrimination which is illegal as fixed term workers should be treated the same. Be prepared to argue your case though. Can you speak to HR?

[SuperSaint]

Thanks maggie that's what I thought too.

It's a small company and tricky as I don't want to get labelled as a trouble maker as soon as I start! I will speak to HR on Monday.

[chanie44]

Does the paperwork say 'you can't joint the pension scheme because you are on a fixed term appointment', or have you assumed this?

I work for a public sector organisation and our pension scheme has lots of rules around eligibility which affect permanent staff as well as those on fixed term contracts eg minimum earnings threshold.

I would phrase it as a question I the first instance eg 'what criteria makes me ineligible' and take it from there.

[SuperSaint]

Chanie it is public sector.

The contract just says "This post is ineligible for the pension scheme" but does not state why. I actually applied for a permanent post there which offered a contributory pension scheme as part of the benefits. I did not get that job but was offered this FTC a few weeks later - exactly the same job as the perm one.

Minimum earnings threshold won't apply but I will ask them why I am not eligible. I assume they cannot say it it because it is a fixed term contract so I will see what else they say.

Thanks for the advice.

[AlpacaYourThings]

How big is the company? As they may have passed their automatic enrolment staging date, in which case they don't have an option about allowing you into the pension scheme and they have to contribute, too.

[baffledmum]

Hello, You just need to find out what the eligibility criteria are for the pension scheme. Just because a business is past its auto-enrolment date doesn't mean it has to make contributions too. There are different groups of workers under auto-enrolment legislation and your employer would notify you of the category into which you fall. Please note that being an employee and being a worker are not the same thing, you can be a worker without being an employee for auto-enrolment.

[AlpacaYourThings]

The only group that an employer doesn't have to make contributions for is an Entitled Worker (which is someone earning less than £5772 PA.) but, they would still have to allow OP to join the scheme, if they requested.

OP, if you earn above this amount your employer does have to make contributions.