# Company Pension Issues



## Kerr (Mar 27, 2012)

A person joins a company and tells them one of the biggest attractions is the pension.

Employee fills in all the documentation given to start the job. There is only one sheet about the pension. It shows company v employee pension percentages and the employee highlights the highest bracket contributions and lets HR know that is what they want. There was no further mention of any more paperwork to fill in. 

A couple of pay days later and there were no pension deductions. Employee was told by manager it will be because they are on probation and it would get sorted. A couple of months later and nothing.

After numerous requests HR finally enrolls employee in the pension plan. The problem is they are refusing to backdate contributions. I think that is a terrible thing to do. They aren't going to keep employees if they pull bad stunts like that.

My understanding is a company only has 6 weeks to enroll a new employee in a pension plan. I also read there is a requirement to backdate contributions?

Opinions, thoughts and maybe some facts?


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## Naddy37 (Oct 27, 2005)

Sounds normal. I’ve just completed 6 months probation in my new job and it wasn‘t till 2 weeks prior to that pay day that the Finance Director emailed asking did I want to enroll.

Wasn‘t back dated!


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## Kerr (Mar 27, 2012)

Naddy37 said:


> Sounds normal. I’ve just completed 6 months probation in my new job and it wasn‘t till 2 weeks prior to that pay day that the Finance Director emailed asking did I want to enroll.
> 
> Wasn‘t back dated!


I don't think they are allowed to do that. I'm sure there will be a pension expert somewhere.

I should have also pointed out that other new employees got their pension contributions straight away.

This isn't your field @The Cueball ?


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## EricSab (May 9, 2020)

Hi the company has a legal obligation to enrol you automatically into a pension scheme within 6 months, which you can opt out, but you'll have to wait a period of time to re enrol. 

Workplace pensions 

It is possible to backdate pensions. However it requires more than a standard date input into the payroll system. Depending on the software the employer may need to do some manual calculations which can be a bit of a pain if their software is older than pacman. But otherwise it's not really difficult, and a heads up to the provider. I had a fairly large stint in payroll so this is from experience. 

I've just found this from the pensions regulator as well. 






Missed duties start date and backdating contributions | The Pensions Regulator


If your client has missed their duties start date, they need to work out what their duties are and comply with them immediately. This may include backdating contributions to their staff's workplace pension.



www.thepensionsregulator.gov.uk





I'd have a chat with your pensions provider first then take it to the employer.


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## Andy from Sandy (May 6, 2011)

At my last company it was 3 months before being enrolled into the company pension scheme. Being that the company was matching my contribution and that once the money was in my pot it was mine it was part of the contract.

Since I left pensions have obviously changed. 

Workplace pensions: Joining a workplace pension - GOV.UK (www.gov.uk)


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## The Cueball (Feb 8, 2007)

New starts on probation get nothing, but they have to be told about the pension within 6 weeks (we do it within the job offer letter)

They are automatically enrolled onto company pension on month 4 unless they opt out.

We don’t backdate contributions to their start date.

But all the above is explained, confirmed and agreed with the employee.

:thumb:


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## EricSab (May 9, 2020)

EricSab said:


> Hi the company has a legal obligation to enrol you automatically into a pension scheme within 6 months, which you can opt out, but you'll have to wait a period of time to re enrol.
> 
> Workplace pensions
> 
> ...


Sorry i initially misread your message. 

Reading again after the other posts this does sounds like a matter that should have been explained to you, verbally /contract etc. 

If there had been a balls up and you had missed contributions because of an error then the pension can be backdated.


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## suds (Apr 27, 2012)

personally i dont see any legal problems when a company wants to wait for a new starter to pass probation before the employer enrolls them in to the company pension. Had they enrolled you from day 1 then they would reimburse any personal contributions if you fail probation. Company pensions are not a right and the government backed auto enroll pensions are pretty poor imo. Take your 3 months pension contributions and put them in to a personal isa or equivalent?


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## Hugos (May 3, 2011)

Under auto enrolment if you are over 22, earn over £833 a month and are a UK resident then you should be enrolled in the pension. They have an option of postponing the joining of pension for 3 months but you should have been given this when you started. However if you request to join the scheme then you should have gone straight into the pension!


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## Hugos (May 3, 2011)

suds said:


> personally i dont see any legal problems when a company wants to wait for a new starter to pass probation before the employer enrolls them in to the company pension. Had they enrolled you from day 1 then they would reimburse any personal contributions if you fail probation. Company pensions are not a right and the government backed auto enroll pensions are pretty poor imo. Take your 3 months pension contributions and put them in to a personal isa or equivalent?


You can only opt out and receive a refund of contributions within 30 days of been enrolled in the pension. If you fail your probation then you aren't entitled to a refund if contributions. 

Company pensions are a right hence why auto enrolment was set up


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## suds (Apr 27, 2012)

Hugos said:


> You can only opt out and receive a refund of contributions within 30 days of been enrolled in the pension. If you fail your probation then you aren't entitled to a refund if contributions.
> 
> Company pensions are a right hence why auto enrolment was set up


Sorry, yes. I was confusing traditional old fashioned company schemes with the government auto enroll


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