Bloody pension auto-enrollment

[ILoveMyMonkey]

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.

Agree. Work in local authority. Worked pt in a low paid job, i was auto enrolled so was short on my first pay.
I had to complete a form, post it to the pension handling office. As i did this within 3 months they credited it in my pay. If you leave it too long, it'll be a cheque.
Anyhow, I got a better paid job in the L.A ......and they fucking auto-enrolled me again 🙄

I’m surprised that an employer would try to stop you from opting out of the pension scheme as you being in It is such a big cost to them! If anything it would be the other way but of course we are not allowed to do that.

OP have you thought that if you put some of your mortgage on interest only, the tax free lump sum could pay off the debt, and you can be left with a pension. The input ratio in a DB scheme means this is likely to stack up.... just a thought

I have always been a strong advocate of pensions (and would myself never opt out of a DB scheme) but some public sector schemes do require quite high payments now and the OP isn’t unique in terms of opting out of DB schemes. She didn’t ask for advice on what she’s doing and is unlikely to change her mind because of a mumsnet grilling.

I know plenty of people for whom an unexpected £300 loss would tip them over the edge financially in a month so there is something about the auto enrolment process that feels a bit unfair here. Surely a letter from the employer 3 months in advance to warn the 3 year period was coming up to allow time for a choice would be fairer?

Even if there was a warning letter, the employer would still have to make the deduction as you can’t opt out before being auto enrolled. That is a good point about warning people though.

OKhitmewithit have you thought that if you put some of your mortgage on interest only can I ask what your profession is in order to offer that advice? I only ask because in order to get an interest free mortgage these days you need to have proof of how you are going to pay it back at the end otherwise they laugh you out the building and won't consider you for interest only at all. We asked our mortgage advisor about all mortgage options, that was not open to us.

@user1471426142 thank you user I appreciate your support, I agree it is unfair and on a normal month we manage comfortable but a surprise deduction at the end of January (a tight month anyway after Christmas) was not helpful.

I’m a Chartered IFA @IloveMyMonkey.

Your assessment of interest only isn’t accurate. It does depend on earnings, LTV’s etc, but it can also be secured.

It isn’t a given, but it is a sensible route to investigate. You are unfortunately giving up a massive benefit, look for a work around.

I’m a Chartered IFA fair enough but we obviously did not meet the criteria for an interest only mortgage.

I have an interest only mortgage, which will be cleared by my pension. It’s a very real thing. Keep it under review. I appreciate you’re taking stick on here, but many of us can only dream of such generous benefits. Don’t underestimate how much you may appreciate it in the future.

Also OP, some of your mortgage, not all of it. ...

Please stop giving me financial advice people I came here for a rant not people to criticise all mine and DH financial decisions.

Anyone who wishes to discuss teacher pensions might find this thread interesting...www.mumsnet.com/Talk/the_staffroom/3495678-withdrawing-from-tps

If you do not want financial advice
(a) do not post on the money board
(b) do not be so blerdy rude to the qualified accountants who are trying to help you

Ta1kinPeace. Read the OP - at no point did I ask for financial advice.

a) do not post on the money board I think you'll find that I was complaining about a money issue I can post on the money board!
(b) do not be so blerdy rude to the qualified accountants who are trying to help you I haven't been rude, I have simply asked people to stop giving me advise I don't want!

Please fuck off you've been spoiling for a fight with me for whatever reason since page 1 - do you work in payroll and had people having a go at you about auto enrollment today???

Perhaps let a bit of that advice land. Perhaps your choices are not as great as you think.

We can afford our mortgage
No you can’t , I don’t know how people get to thirty plus with such bad financial planning.

By not accepting such a gold standard benefit, you're effectively volunteering for a massive pay cut

MyDcAreMarvel

No you can’t
What makes you think that?

Beacayse you can’t afford your pension which is throwing free money away!

bear with me here as I don't know much about defined benefit

isn't this what the uni strike was about, the one that happened last year? People paid into those schemes and were told the rules were changing?

I'd be royally pissed off if I paid into a scheme like that and then got told it was going to be a lot less than projected.

Auto enrolment is such a bloody faff on. Just wanted to add a couple of points in case ppl werent aware... you can still opt out after 30days and you will get your money refunded! Also they dont advertise this (and it may be dif for teacher pensions but worth looking into) but you can 'opt down' and request a lower % pension. Worth looking at if the new rates in april go to high to be manageable! Hope payroll sort yours out asap OP if they get the opt out notice from the pension provider dont see why they couldnt redo your payroll in the next couple of days!

I’ve not been able to afford a pension - single woman, low paid job, rented house - and am due to retire in 6 years. Totally dreading it

You really are missing out on a huge perk of public sector employment. You're losing free money!

Your mortgage is huge. I agree you've stretched too far on the mortgage. I would have gone for the smaller house and kept the pension.

My LA's pension is the only reason why I still work in the public sector. You should really see if there's anything you can do about your finances to allow you to be part of it. Final salary pensions are almost unheard of these days.

snip snip

You're daft for opting out you can always get another job or side hustle to make up that amount each month. Stop thinking of now only and think of how you will support yourself in old age.