Pension contribution set up after leaving employment.

[Oh dear]

Hi,

Thank you for allowing me to join. I've not had this situation before and hope I'll make sense.

I left a very small Employer (no HR etc) after 6 months in part because/when it was starting to look like I wouldn't have a pension set up. (the contract of employment gave no dates of when the pension would be set up, but heavily noted a probationary period of three months which I deemed to have past by the continuing to work there) I never signed to opt out of a pension and have nothing else in writing.

I'm aghast to have left this employment nearing a month ago to today being notified they've now literally opened a nest account. (when I'm technically no longer an active Employee)

My question; with final payment possibly due for this Employer end of month, which literally would only be holiday accumulation from those 6 months worked now, could this final payment now be at risk of being used to cover missed pensions contributions? (ie. from month 3 of employment when probation was over)

Or, can the nest account just be created by the Employer as it were to prove they've done something in regard to pension set up?

Thanks for reading.

 

[Newchodge]

If your employer was required to enrol you in a pension scheme at an earlier date THEY must pay your contributions due to it from its inception if they did not deduct them from you at the time. As they have, apparently now set it up your future pay will be subject to deductions. However, if you opt out of the scheme within 1 month of receiving the documents from the pension provider, your contributions must be refunded.

 

[Oh dear]

Thank you for your time, this is really useful.

 

[Oh dear]

If your employer was required to enrol you in a pension scheme at an earlier date THEY must pay your contributions due to it from its inception if they did not deduct them from you at the time.

But how do I find this out? if nothing was put in writing, there were no 'we're able to delay pension conts' letter, and the Director's attitude was well I am not on payroll so don't really care or know much. The employment contract was just full of errors.
I've asked twice now why they took this course of action after leaving but yet to receive any answer.
I didn't have to worry losing my pay to contributions as they just failed to pay all and any outstanding holiday pay and so from set up on Oct 22nd to Nov 5th when the Nest account just closed on production of the P45. With nothing paid in.

I've looked at the pension regulator report guidance but note you have to provide a estimate/timeline with how much should have been paid.

I am disappointed as I believed in the mantra "make work pay" and thought pension contributions couldn't be ignored in this fashion in these times. It just seems the system is stacked against the Employee as even Nest just say:
"You may wish to report the employer to The Pension Regulator (TPR) if your employer has taken contributions from your wages and hasn't paid them to Nest towards your retirement pot."
Reading this just makes me think Nest condone some Employers never bothering.

Sorry to drag this up but I really like to understand how an Employer becomes exempt.

 

[nelioneil]

Nest certainly don't condone this behaviour, the regulator especially does take actions, they have many stories of fining companies on their website. A company with employees (not single director) cannot be exempt from paying contributions if employees do not opt out, and the default position is they are opted in.

You should also send them a warning that you will plan for legal action for all monies owed (final pay, holiday oay) as well as getting your pension contributions sorted. Obviously bear in mind your final payslip will be reduced as they would no doubt need to deduct 6 months of personal contributions which they need to pay, as well as the 6 months of employer contributions they need to pay

Your probation was 3 months but unless the company made it crystal clear they are postponing enrolling you on the pension after 3 months, then you are assumed to have been enrolled after 1 day.

 

[Oh dear]

Thank you so much for listening, the Employer's first response last week, was well, we least are right on for everyone else, as if in some consolation, which if nothing frankly incensed me and after asking them to make it good as I said not wiling to over look pension contributions - Today they have referred to their accountants making an answer.

 

[WaveJumper]

So you say in your original post part of the reason for leaving was "it looked like you was not going to get a pension" did you actual sit down with your employer and have a chat about this and your concerns, if you did what was their explanation.

 

[Oh dear]

Thanks for taking the time to respond - sadly the attitude coming from my line manager of a director was well I am not on payroll so can't help you. The only written piece of paper from them is their employment contract. Sadly I didn't like to approach the other far older Director who I just didn't have the working relation with. Something I now perhaps kind of regret but I am mindful of the 2 yr let go rule without having to give a reason should they not have taken kindly to me forcing the issue - and still have been in this position.

It's also the reason why I had no leave taken in 6 months - seeing attempts toward sales people managed out in suddenly becoming incompetent when they asked for it, it has even now deeply occurred to me perhaps they were going to be letting go of me just upon reaching the 6 months as I didn't like their previous response of well this was has just been unfortunate timing, get lost and we're doing right by other people now in consolation. I'm gutted I worked my notice, still got results for the company, thought I left very well.

I'm personally mixed as to what the accountant will come back with. I guess I am bum covering as well as when a future new employer say's we can't get a reference, I at least then can bring this up and avoid any other evader.

 

[WaveJumper]

keep the forum posted and let us know how you get on, best of luck

 

[Oh dear]

As I hadn't heard anything, I did follow this up before thinking of issuing MCOL - got this tiny victory back
Yes in short, our accountants summarised that: 'As xxxxxx was with the company from April 2021 to October 2021 she would have been due employer pension contributions of £71.11 for the time after her 3 months postponement period.'

They are offering to issue a cheque or pay BACS - but can't I just ask they do this through Nest?

I decided to forego the missed holiday, as morally it felt wrong trying for this, with at least having received universal credit, thanks to another of their payroll disasters when I had originally left.

 

[WaveJumper]

Good result then, thanks for updating the forum