Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

1 2 3 4 5

Original poster

Bloody pension auto-enrollment

104 replies

ILoveMyMonkey · 01/02/2019 10:24

Arrrggghhhhhh

So because I work for the local authority (where I've worked for the last 11 years and have never opted in to the pension scheme because I simply can't afford it) they have taken it upon themselves to auto-enrol me leaving me £300 short in my wages this month. Despite being passed around the houses (pensions to payroll to general HR to specific he and back to payroll) noone will do anything to give my money back and I now have to wait for my next paycheck to get it back! So basically they've stolen everyone's money (who have opted out) stuck it in a high interest account and are earning off of it.

They just don't seem to realise care that I have bills to pay and a child to feed! And when I asked if they would refund the bank charges from unpaid bills I was told "well you can try and claim that back from the government" .

Bastards, why are they allowed to do this?? Surely if you've opted out once you've bloody opted out!!! I wouldn't mind but I changed schools in sept 2017 and was auto-enrolled then and ended up having to opt out 5 times before they finally sorted it out and I was short in my pay every month until they finally solved the problem - arrrggghhhhhh!!! And yet here I am just a few short months later going through the same bullshit!

I'm so annoyed, and fucked, and annoyed.

OP posts:

IceRebel · 01/02/2019 10:30

I thought companies had to auto enroll you again after a period of time (3 years if my memory is correct) it's very annoying for you at the moment but will be easily sorted. Although i'm confused by anyone who would opt out of a pension.

Original poster

ILoveMyMonkey · 01/02/2019 10:36

Although i'm confused by anyone who would opt out of a pension

Well it's a choice between paying the mortgage and buying food or paying into a pension that I'll probably never receive because by the time I get there they'll have upped the retirement age to something ridiculous or they'll have stolen all the money in the pension pot!

Yes I'm sure it will be easily resolved but that doesn't solve the financial issues they've now left me with for this month.

OP posts:

RaininSummer · 01/02/2019 10:44

I also opt out as I just can't afford it. No pay rise in four years and low wage to start with. Derisory contribution by my employer too. I may have joined if I thought my wages may have risen at least with inflation but fat chance. Couldn't risk a pay cut. Anyway the auto enrol is a pita.

Original poster

ILoveMyMonkey · 01/02/2019 10:45

RaininSummer thank you, glad it's not just me.

OP posts:

AnchorDownDeepBreath · 01/02/2019 10:50

They legally have to enrol you into the scheme again every time you change employer or three years has passed since you opted out. You then have to tell them within a month that you want to opt out and they refund the money the next month. If you don't tell them within the first month, you can't get the money back until you're over 55.

Essentially it sounds like they've done exactly what they are legally obligated to do. It might be worth setting a reminder to opt out again in three months and hopefully do it before payroll runs?

In the meantime there is no way for your work to recover the money until your next pay date. Have you asked for a loan until then? You shouldn't have to but they might let you under the circumstances.

chicaguapa · 01/02/2019 10:56

Lol at the idea the government has stolen your money and put it in a high-interest account!

You must earn a good salary if your auto-enrolment contribution for one month is £300? I often wonder how people expect to manage in retirement with no income when they say they can't afford a pension contribution in employment with an income.

IceRebel · 01/02/2019 10:57

I'm very sorry to hear you're in financial difficulties because of the missing £300, is there a possibility that a family member or friend could help you out until it has been returned to you? Or is the child's other parent on the scene? If so perhaps they could help out a little more with regards to food etc this month, to help remove that worry?

Original poster

ILoveMyMonkey · 01/02/2019 11:10

Lol at the idea the government has stolen your money and put it in a high-interest account!. Wouldn't put it past the thieving government bastards 😉.

You must earn a good salary if your auto-enrolment contribution for one month is £300? Tbh I've had to guess the figure as my payslip is being held hostage at school due to the snow but it's somewhere between 200 and 300 because I did some (unusual and uncommon) overtime so I'm about £100 short on my normal salary and then the overtime pay is missing too. My salary isn't fabulous as I work pt. But I do have a massive mortgage of £1300 a month.

I often wonder how people expect to manage in retirement with no income when they say they can't afford a pension contribution in employment with an income. We have an expensive house in an expensive area that holds its prices which we will sell, downsize and move to a much cheaper area. Inheritance will also help. And we plan to have pt easy on the brain and body jobs to help earn a few pennies.

Thanks for all the suggestions, dad is on the scene but our finances are super tight right now. We'll manage and I could do with losing some weight its just so frustrating that they can do this but a rant really helped.

OP posts:

LivLemler · 01/02/2019 11:15

My stomach dropped at the thought of missing out on 11 years in a (presumably defined benefit?) local government scheme, tbh.

ILoveMarmiteToo · 01/02/2019 11:17

Your employer still has the money in their bank account and has not paid it into the pension scheme as yet. They have to withhold it for a month to see whether you opt out. You could ask your employer to lend it to you until next month? You may have autoenrolled due to the additional hours you did this month as it may have triggered auto enrolment.

MLMsuperfan · 01/02/2019 11:22

You opted out of 11 years defined benefit??

Original poster

ILoveMyMonkey · 01/02/2019 11:22

Your employer still has the money in their bank account and has not paid it into the pension scheme as yet. Which makes it even more ridiculous that they can't just give it back to me now that I've filled out the opt out form online for the millionth bloody time.

You may have autoenrolled due to the additional hours you did this month as it may have triggered auto enrolment. I've done similar overtime before and it's never triggered it, the letter I got said it was because of the 3 year anniversary and having to re-enroll because of that. Definitely going to set a reminder for the next 3 years like a pp suggested so it's not a complete shock next time.

LivLemler don't know what to tell you can't afford to pay out a huge percentage of my salary each month, we live to our income due to our mortgage.

OP posts:

LivLemler · 01/02/2019 11:48

That really sucks OP. The difference that pension would make to your retirement... Honestly if there's any way at all, at any stage, that you can opt back in, please please do so. It's likely a phenomenal benefit, and by missing out on it you're taking a huge, huge pay cut over the long term.

Kazzyhoward · 01/02/2019 11:54

Increasing retirement ages don't affect your occupational pension - your "fund" will be there when you CHOOSE to retire and take it.

It's the state pension that is being put back and today's youngsters probably won't get one at all.

The whole point is that people are being encouraged to save for their own pension to give them the freedom to choose when to draw it, which is far better than the state pension limitations. Also, extra benefits such as your beneficiaries being able to inherit your pension fund when you die, whereas state pension dies with you, even worse if you die before you reach the age to claim it.

Original poster

ILoveMyMonkey · 01/02/2019 12:01

Please don't turn this into a ... You should be paying into a pension thread... I simply cannot afford it. I was just ranting about auto-enrollment and how I disagree with that once you've opted out the first time.

OP posts:

BobLemon · 01/02/2019 12:44

But... local authority pension... opted out?? OMG. But they give you free money!!!

My salary is £44,000 and my auto-enrol deduction is £110 BEFORE tax/NI, so that would only be a net cost of around £75 (assuming no other deductions).

Unless your PT job pays a huge wack, it can’t be £200-300 !

BobLemon · 01/02/2019 12:46

I could have simply said... “3% of gross”. Auto enrolment contributions really aren’t a huge percentage

Original poster

ILoveMyMonkey · 01/02/2019 13:00

It's not 3%, it's 7.4%

OP posts:

MrsPworkingmummy · 01/02/2019 13:11

I'm in the same position as you OP. I'm a teacher with a good salary, but I have a huge mortgage (£1410), the house has HUGE running costs as is very old and we also have childcare to pay. I haven't been paying in since 2015 as simply couldn't afford £350 a month out of my account. I was actually putting in £450 a month at one point in my old role. I simply couldn't afford that now. Needs must! The rule is they definitely have to auto enrol you every 3 years. X

Original poster

ILoveMyMonkey · 01/02/2019 13:22

MrsPworkingmummy glad it's not just me. I always thought it was a shame that you can't set your own monthly contribution because then I could set it to an actual affordable level for my families finances.

Anyhoo, every day's a school day as I hadn't realised they re-enroll you every 3 years - lesson annoyingly learned.

OP posts:

ILoveMarmiteToo · 01/02/2019 13:50

If your rate is 7.4% then your maximum contribution in a month would only be £167 before tax/NI.

Original poster

ILoveMyMonkey · 01/02/2019 13:58

If your rate is 7.4% then your maximum contribution in a month would only be £167 before tax/NI.

Well whatever it is I can't afford to pay it and was pissed off at being forced into a scheme that I don't want to be a part of and then to have to wait 4 weeks to get that money back.

I did say that my pay slip is at school so I was guessing the figures - it may be that I haven't been paid my overtime yet but my normal salary was around £100 short.

OP posts:

Ta1kinPeace · 01/02/2019 14:07

Is there not a 50:50 scheme for teachers as there is for the LGPS

I am sorry but I think anybody who opts out of DB pensions needs to get a grip

Original poster

ILoveMyMonkey · 01/02/2019 14:56

I am sorry but I think anybody who opts out of DB pensions needs to get a grip
WTAF, I have got a grip ... a grip on my finances. Not all of us are earning big bucks, my salary is just under £18K a year and my husband isn't a big earner either!! I don't think some members of Mumsnet live in the real world actually. Our monthly outgoings are 87% of our monthly incomings which doesn't leave much for clothes and shoes for our growing child not to mention school trips, cheap days out, general having a life. We live hand to mouth but by all means do post me a money tree or teach me how to poop money and I'll happily get a grip and contribute to the pension scheme!!!!😠

OP posts:

Ta1kinPeace · 01/02/2019 15:01

Monkey
I am very well aware of the costs of DB pensions
but any savings product where your contribution is topped up three times over (risk free) by somebody else
and offers the long term benefits of the Public Sector pensions (Death in service benefits, widowers pension, Tier 1 pensions)
is worth prioritising

Flip

1 2 3 4 5

Swipe left for the next trending thread