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Original poster

Work Pension Scheme

65 replies

Girlmum2024 · 09/12/2024 13:09

Hi

Can anyone please help out with a work pensions query.

My company don't have a pension scheme. With my old employers there were great company schemes and I made additional contributions to get the maximum allowed. As such I have built up a good pension pot.

However, I have been a bit crap since I joined my new employer about making regular contributions and it's been on my list to raise it with them but not got around to it.

However I have just received this email. Text copied below.

"Every 3 years there is government mandatory requirement that people are auto-enrolled into the NEST pension.

RDP, the payroll admin, forgot to cancel this in September when you were auto-enrolled. That means for 3 months, a payment of £142.03 per month has been deducted from your salary and paid into NEST. Assuming you are happy to be removed from NEST, the total deducted amount will be included in your Dec salary payment.

Also we are talking to a pensions consultancy about putting in place a company pension scheme with employer contributions and other benefits, ideally by beginning of new year. Once this is progressed, we’ll present the options to you"

I am very confused. Why would they suggest I am removed from NEST when they don't already have a scheme? Don't they have a legal duty to provide their own if they are not enrolled on a government back one??

Not sure what to respond.

Any advice?

OP posts:
BuzzieLittleBee · 09/12/2024 13:18

That's confusing. Do your payslips show a contribution to the pension scheme? Are they saying that they money was 'taken' from your salary and not paid into a pension?

What size company is it/how many employees? I think that has a bearing on their obligations regarding pensions.

ThatIsNotMyNameSoWhyAreYouCallingMeThat · 09/12/2024 13:24

They can’t “not have a scheme”. It’s been a legal requirement for years!

ThatIsNotMyNameSoWhyAreYouCallingMeThat · 09/12/2024 13:24

Nor can they force you to opt out of it!

Original poster
Girlmum2024 · 09/12/2024 13:26

BuzzieLittleBee · 09/12/2024 13:18

That's confusing. Do your payslips show a contribution to the pension scheme? Are they saying that they money was 'taken' from your salary and not paid into a pension?

What size company is it/how many employees? I think that has a bearing on their obligations regarding pensions.

It seems to be saying money was taken and paid into the NEST scheme. But if I opt out it will be returned to me in my next salary payment.

We are a small company - only 10 employees

OP posts:
BarbaraHoward · 09/12/2024 13:27

Presumably if you decide you want to opt out, they save the employer contributions.

I'd reply confirming you want to stay in NEST and asking for proof that the employer contributions have also been made.

They sound shady as fuck so make sure to check everything.

Pomegranatemum · 09/12/2024 13:31

Unless your salary is very low, they’re breaking the law.
It doesn’t matter how many employees they have - the legal obligations apply even if there is only one employee…

Original poster
Girlmum2024 · 09/12/2024 13:38

If I agree to opt out of NEST do they have to make a regular payment into my own pension pot? I can raise this with them but what about the months that they have not been paying it?

OP posts:
BaleOfHay · 09/12/2024 13:41

What @Pomegranatemum said - why do they not have a pension scheme when it is a legal requirement?

MisoSalmonForLunch · 09/12/2024 13:43

Girlmum2024 · 09/12/2024 13:38

If I agree to opt out of NEST do they have to make a regular payment into my own pension pot? I can raise this with them but what about the months that they have not been paying it?

No they don’t. They have to offer you a pension scheme. It sounds like that is NEST. They don’t have to make payments into your scheme of choice.

Original poster
Girlmum2024 · 09/12/2024 13:44

I have looked over old emails from when I started at the company and I've seen an induction email that said they would pay into a personal pension scheme of my choice if I send them the details. I have never done so, so perhaps it is my fault.

If so, and I am at fault for not sending them my pension choice, can I ask them to back pay?

OP posts:
PickledPurplePickle · 09/12/2024 13:44

NEST is their pension scheme that you have been auto enrolled in

You will be making contributions and so will they. you should have received welcome letters, etc from
the scheme when you were auto enrolled

if you opt out then they don’t have to pay into another scheme for you

MisoSalmonForLunch · 09/12/2024 13:47

Girlmum2024 · 09/12/2024 13:44

I have looked over old emails from when I started at the company and I've seen an induction email that said they would pay into a personal pension scheme of my choice if I send them the details. I have never done so, so perhaps it is my fault.

If so, and I am at fault for not sending them my pension choice, can I ask them to back pay?

You can ask but they don’t have to pay. And you might have to contribute too - auto enrolment is paid by both employer and employee.

Pomegranatemum · 09/12/2024 13:47

It’s not your fault OP. The point of automatic enrolment is the employer does it automatically without the employee having to make a choice.
Honestly, your employer sounds clueless at best, or potentially dodgy.
Check out the auto enrolment pages on the Pensions Regulator’s website.

Comefromaway · 09/12/2024 13:48

Wow, what they are doing is highly illegal!"

Assuming you are aged over 22 and earn over a certain level auto enrolment is just that, automatic. Only YOU can opt out of it and you have to send a specifically worded email/letter etc.

The maximum time the company can defer you being auto enrolled into NEST is 3 months. It HAS to be an opt out situation, not an opt in one. If theyhave opted you out of NEST without your specific instruction they owe you lot of back pension contributions.

Comefromaway · 09/12/2024 13:50

I administer the auto enrolments at our company by the way. We don't use NEST but there are certain legal obligations they cannot get out of.

Original poster
Girlmum2024 · 09/12/2024 13:54

Pomegranatemum · 09/12/2024 13:47

It’s not your fault OP. The point of automatic enrolment is the employer does it automatically without the employee having to make a choice.
Honestly, your employer sounds clueless at best, or potentially dodgy.
Check out the auto enrolment pages on the Pensions Regulator’s website.

So I see I replied to an email when I joined ( I see they chased a response from me) saying I was fine to not be enrolled in NEST and for them to pay into my own personal pension instead. But I never sent them any details so no payments have been made... and it has totally slipped off my radar until now.

Not sure why why want us to opt out of NEST and would rather pay into my personal pension scheme but now not sure what to do.

Shall I just send details of the pension I want them to pay into from now on (and see if they will make any back payments?) Or shall I say I don't want to opt out of NEST? Just not sure what is best and the difference (other than with my own I can choose a preferred provider?)

OP posts:
Original poster
Girlmum2024 · 09/12/2024 13:56

Comefromaway · 09/12/2024 13:50

I administer the auto enrolments at our company by the way. We don't use NEST but there are certain legal obligations they cannot get out of.

Such as? Do I have any recourse for having missed out on so many payments or is it my fault because they offered and I never followed up?

OP posts:
Oblomov24 · 09/12/2024 13:57

Goodness me what a mess. They do have a NEST account clearly. And they haven't paid into your plan. They have failed miserably.

EauNeu · 09/12/2024 13:57

You need good advice stat. They have potentially swindled you out of thousands here, either through incompetence or dishonesty. They have broken the law.

Angrymum22 · 09/12/2024 14:01

Having been an employer they have to provide a scheme and are obliged to contribute unless you opt out. If you have been contributing you should have been receiving statements from nest and be able to access your pension account online. From memory you can opt out at any time but it is a rolling autoenrollment so your employer cannot remove you without your consent. They seem to have misunderstood the system.
Make sure you reply and contact Nest to provide a statement. Pension contributions affect tax, you can’t be taxed on the contribution but if they refund it will be taxed so HMRC may flag it. This could lead to you having to do a self assessment.

If your employer uses a payroll software package it should be easy for them to provide you with a history of your contributions.

EauNeu · 09/12/2024 14:01

MisoSalmonForLunch · 09/12/2024 13:47

You can ask but they don’t have to pay. And you might have to contribute too - auto enrolment is paid by both employer and employee.

Show quote history

this confidently given advice is completely incorrect as a basic google search would have revealed. A great example of why not to get legal advice on online forums

NoWordForFluffy · 09/12/2024 14:02

You clearly opted out when you said you didn't want enrolling into the NEST scheme when you first started. Has your third anniversary been and gone recently? If so, that's the auto-enrolment every 3 years which has happened, resulting in the three months of deductions (how did you not notice these?).

Because you'd previously opted out, they're simply asking if you want to remain in, or opt out again. Or that's my reading of the situation.

Cardboardeaux · 09/12/2024 14:02

Girlmum2024 · 09/12/2024 13:56

Such as? Do I have any recourse for having missed out on so many payments or is it my fault because they offered and I never followed up?

Show quote history

Yes, if you have missed out on past contributions then these should be made good. You can report them to the Pensions Regulator

Original poster
Girlmum2024 · 09/12/2024 14:06

Cardboardeaux · 09/12/2024 14:02

Yes, if you have missed out on past contributions then these should be made good. You can report them to the Pensions Regulator

Show quote history

Even though they asked me to send them details of my personal pension to pay into and I never did?

I feel like that is on me but also miffed that they never followed up (I presume that suited them) when I clearly said I wanted to make contributions.

OP posts:
Okayornot · 09/12/2024 14:07

"So I see I replied to an email when I joined ( I see they chased a response from me) saying I was fine to not be enrolled in NEST and for them to pay into my own personal pension instead. But I never sent them any details so no payments have been made... and it has totally slipped off my
radar until now."

Not relevant. They have to auto enrol you into an appropriate scheme and to make employer contributions unless you opt out. Had you sent them details of your own scheme and they had contributed to it at the right rate that would probably have met their legal obligations. As you didn't, they had to put you in their scheme, ie NEST.

There are rules around how employees can opt out of auto enrolment, and they include getting a form from the person running the scheme (ie NEST). A reply to an email is not sufficient.

I would be going back to them and saying I want to stay in NEST, or otherwise giving them details of your scheme if you prefer, and asking them to confirm that they have made all their contributions to date as required by law. If you ask them to contribute to your scheme going forward they should leave your contributions (and the employer contributions) in your pot NEST and you can transfer them to your personal pension at a later date (assuming the provider will accept the transfer, which they should). Then you can consolidate your savings.