Work Pension Scheme

[Girlmum2024]

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?

I'm not sure. The website wants a lot of info. https://www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/report-concerns-about-your-workplace-pension/report-a-concern-relating-to-your-workplace-pension-scheme

Will my identity become known?
We understand that when you supply information to us it may have a potential impact on the relationship between you and those you are reporting, particularly in the case of a worker and their employer.
You can always choose to be anonymous when reporting concerns to us so no one will know your identity. However, it is useful to have your contact details in case we need to ask you for more information. There is whistleblowing protection under the Employment Rights Act 1996 which protects most employees if they raise a concern about wrongdoing – either internally or externally.
Will my identity be protected if I report a concern?
We will do our best to protect your identity (if desired) and will not disclose it except where lawfully required to do so. We will take all reasonable steps to maintain confidentiality but we cannot give any categorical assurances as circumstances may mean that disclosure of your identity becomes unavoidable – for example if we are ordered by a court to disclose it.
What happens after I report a concern?
After you report your concern to us we will start making some initial inquiries and we may contact you to clarify information (if you provide your contact details). We do not encourage you to try to get any new information.
If following an initial assessment of all the information we consider it appropriate, we will refer your concern internally for investigation. However, please note we are unable to give feedback on the outcome of any assessment or of any investigation (if one is conducted) due to legal restrictions.

Probably best I just speak to a pensions advisor rather than the regulator at this stage then.

I've asked for a meeting in response to the last email and said that I don't want to be removed from NEST at this stage. I presume that means they need to make employer contributions and will need to cover the months since I have been auto enrolled?

Good luck. This is too important to let slide.

Aside from anything else your payroll team seem massively disorganised and Ill informed. Id be going back through all of my payslips with a fine toothcomb and a decent accountant. I bet this isn't the only thing they have messed up.

Good call. Hopefully nothing else is messy but I will say that I have been paid late on at least 6 occasions. I have had to chase for my salary which is always awkward (it's not a cash flow issue, just disorganisation) and last time had to point out I had direct debits coming and needed to be paid on time.

Some relevant info www.thepensionsregulator.gov.uk/en/document-library/automatic-enrolment-detailed-guidance/7-opting-out-how-to-process-opt-outs-from-workers-who-want-to-leave-a-pension-scheme#e884d8b1266745f9bd2d8885bdd67a42

The opt-out notice
Source of opt-out notice

31. In the majority of cases, jobholders may only obtain an opt-out notice from the pension scheme into which they have been automatically enrolled, and not from the employer. This is a safeguard to ensure that the jobholder’s decision to opt out is taken freely and without influence from the employer.

32. A jobholder could feel pressured into opting out if they were to receive the opt-out notice from their employer, either separately or with other pension scheme information.

33. Such action could, in certain cases, constitute a breach of the inducement legislation. This is explained in Detailed guidance no. 8 – Safeguarding individuals.

34. Occasionally, the administration of the pension scheme is delegated to the sponsoring employer in the trust deed. In these exceptional circumstances, the jobholder can get the opt-out notice from the employer.

Valid opt-out notice
35. When a jobholder gives an opt-out notice, the employer must check that it is a valid notice. This means it must contain the statutory information shown in the highlighted box after paragraph 38.

36. If one notice is used to cover both opting out under the automatic enrolment legislation and ceasing membership under the scheme, the employer must ensure that all the information shown in the box on page 14 and any relevant information from the scheme regarding ceasing membership is contained within the notice. The jobholder must be able to easily identify whether they are opting out or ceasing membership.

37. Whatever the format of the opt-out notice, employers must ensure that the notice meets the requirement to provide the information set out in the box for it to be valid.

38. Once the employer is sure that the notice is valid, they must:
    stop deducting contributions
    let the scheme know
    issue any refunds.
    Information about the jobholder

Full name of jobholder
National Insurance number or date of birth
Signature or, if in electronic format, a statement confirming that the jobholder personally submitted the notice
Date the jobholder completed the form
Statutory statements

What you need to know:
Your employer cannot ask you or force you to opt out
If you are asked or forced to opt out, you can tell The Pensions Regulator – see www.tpr.gov.uk/concern
If you change your mind, you may be able to opt back in – write to your employer if you want to do this

If you stay opted out, your employer will normally put you back into pension saving in around three years
If you change your job, your new employer will normally put you back into pension saving straight away
If you have another job, your other employer might also put you into pension saving, now or in the future. This notice only allows you to opt out of pension saving with the employer you name above. A separate notice must be filled out and given to any other employer you work for, if you wish to opt out of that employer’s pension saving as well.

The notice must also include statements from the jobholder to the effect that they wish to opt out of pension saving and understand that, in doing so, they will lose the right to pension contributions from the employer and may have a lower income upon retirement.

Invalid opt-out notice
39. If the employer receives an invalid opt-out notice, they must tell the jobholder why the notice is invalid. They should also be aware that, in these circumstances, the one-month opt-out period is extended to six weeks.
40. There are also important record-keeping requirements about the opt-out notice for both the employer and the scheme, detailed in paragraphs 63-68.

Does the payslip for Sept,Oct & Nov state Pension Employee AND Pension Employer?

Employer contributions don’t necessarily show on payslips. Ours don’t.

Sage payslips show pension ee's, pension er's, and year-to-date for both.

I do however appreciate that what is 'required' to be shown on your payslip does not include employers pension though!

Thanks to everyone that has replied. I asked for a meeting yesterday and amazingly they openly admitted they have totally cocked everything up and they are seeking advice from a pensions consultant. No employer contributions have been made and we've not been legally opted out. They've been transparent and said they are working on addressing the shortfall and will have something proper in place next year. Will be complicated to sort out but am relieved they are not fighting me/us.

Yes, we use Moneysoft and it only shows employee pension deductions, not employer contributions.

That's good girlmum. Also if they are going to be using a pension consultant then hopefully the pension fund they choose will be better than NEST which really is very basic.

(They don't even need a Pension Consultant, they just need someone with decent basic / overall accounts knowledge, because to be honest these are all basics!).

Presume it's to unpick the mess!