Workplace Pensions and peoples personal views
Discussion
I have a small family care home for the elderly and at the start of the 2016 have to start the workplace pensions.
I have done my homework ( but bare with me i'm no expert). I have sorted out who to use for the workplace pensions scheme. Informed staff about this and what they will get via ourselves letter wise. We have a Meeting about this in 3 weeks time so I am trying to get all the information I require to sort this out.
We employ staff from 21 to 70+. Some have been with us for many years and others a year or 2.
I asked the Workplace Pension scheme a question as many of our staff who have been given all the information about this scheme do no want to join. Their choice.
I was not 100% sure what I needed to do when adding people to the pension scheme.
I was told:
You must enroll all eligible jobholder into a qualifying pension scheme, as it's your legal responsibility to automatically enroll all eligible worker
However, later they can decide whether to stay in the scheme or to opt out
I can understand they want to ensure people who are working get a chance at a pension. I can understand they want to make sure people working for a business are doing this legally
But when I get staff saying to me before I need to start this scheme, that they don't want to join for whatever reason.
That I have to against their wishes add their information anyway. No matter what are their wishes.
I have not looked into what information I need to add to the scheme. But I don't think it's going to be as simple as their name and DOB.
Just seems to be that a business is being forced to add peoples names into a database of some kind without given people the choice
Anyone else find this difficult to understand or is it just me being daft
I have done my homework ( but bare with me i'm no expert). I have sorted out who to use for the workplace pensions scheme. Informed staff about this and what they will get via ourselves letter wise. We have a Meeting about this in 3 weeks time so I am trying to get all the information I require to sort this out.
We employ staff from 21 to 70+. Some have been with us for many years and others a year or 2.
I asked the Workplace Pension scheme a question as many of our staff who have been given all the information about this scheme do no want to join. Their choice.
I was not 100% sure what I needed to do when adding people to the pension scheme.
I was told:
You must enroll all eligible jobholder into a qualifying pension scheme, as it's your legal responsibility to automatically enroll all eligible worker
However, later they can decide whether to stay in the scheme or to opt out
I can understand they want to ensure people who are working get a chance at a pension. I can understand they want to make sure people working for a business are doing this legally
But when I get staff saying to me before I need to start this scheme, that they don't want to join for whatever reason.
That I have to against their wishes add their information anyway. No matter what are their wishes.
I have not looked into what information I need to add to the scheme. But I don't think it's going to be as simple as their name and DOB.
Just seems to be that a business is being forced to add peoples names into a database of some kind without given people the choice
Anyone else find this difficult to understand or is it just me being daft
I fully understand the "everyone gets a pension" but it's the fact of i'm legally responsible for adding people if they want it or not. No matter if they want it or not. Another way of removing a person choice to join or not.
I also understand it's the governments way of making the employer responsible for a pension if they ever decided to reduce or remove the state pension in years to come. Which I don't really think will happen.
I also understand it's the governments way of making the employer responsible for a pension if they ever decided to reduce or remove the state pension in years to come. Which I don't really think will happen.
I think the regulations are heavily slanted towards ensuring that people do not opt out - natural inertia should lead to more folk being in the scheme this way than an opt in system.
It also helps to ensure that employers who might be keen to pressurise their staff not to join have less defence if they are not applying the rules correctly.
Surprisingly to me, our clients are generally saying opt out rates are relatively low so far, so perhaps the plan is working.
It also helps to ensure that employers who might be keen to pressurise their staff not to join have less defence if they are not applying the rules correctly.
Surprisingly to me, our clients are generally saying opt out rates are relatively low so far, so perhaps the plan is working.
It sounds like you could benefit from involving an intermediary who can help you with fulfilling your duties and ensuring that you're compliant. Most corporate IFAs are active in auto enrolment. This is a good place to start: https://www.pensionplaypen.com/
A big majority of of our staff are in their 50's and a few start their pension in the next few years. And why they don't wish to start
I have all the info ready to add them. I was just unsure why I am forced to add people who don't want to have it set up for them.
Another thing people have no choice on.
cheers anywho for the feedback
I have all the info ready to add them. I was just unsure why I am forced to add people who don't want to have it set up for them.
Another thing people have no choice on.
cheers anywho for the feedback
I just saw it as legislation to try to feed the UK financial industry, not sure if im right but I opted out & wish they had made the scheme a bit more adaptable id rather have had the money put into a savings account with the institution of my choice (I prefer to use a building society) that I couldn't access until a later age, than what seemed to me to be an overcomplicated scheme that had a pretty big chance of the money disappearing in 40 years between now and when I'm due to retire.
I googled the company we where told it was going to be and they were in trouble in the US for fraud etc, but it turned out that it was sub contracted then sub contracted again (only way I can really explain it), so I was getting letters for 3 different companies about my up coming foray in to the investment world, I wish I could have in good conscience used the scheme as the ccontribution matching is nice, but it just didn't sit right with me.
What does irritate me is that now 3 companies have some of my personal financial details to do with what they wish, but then they probably already had them.
I googled the company we where told it was going to be and they were in trouble in the US for fraud etc, but it turned out that it was sub contracted then sub contracted again (only way I can really explain it), so I was getting letters for 3 different companies about my up coming foray in to the investment world, I wish I could have in good conscience used the scheme as the ccontribution matching is nice, but it just didn't sit right with me.
What does irritate me is that now 3 companies have some of my personal financial details to do with what they wish, but then they probably already had them.
Two reasons why it is compulsory to enrol all eligible employees.
Workplace Pensions replaces SERPS (but you wont pay less NI).
To stop unscrupulous employers bullying or otherwise persuading employees not to join.
A couple of other things you might not like.
You have to automatically re-enrol opt outs after 3 years.
You have to admit non-eligible employees if they demand to join.
Workplace Pensions replaces SERPS (but you wont pay less NI).
To stop unscrupulous employers bullying or otherwise persuading employees not to join.
A couple of other things you might not like.
You have to automatically re-enrol opt outs after 3 years.
You have to admit non-eligible employees if they demand to join.
Jockman said:
Should be fun 
I have one Employee who is 62 and resolutely refuses to join.
It takes up a lot of management time but it's straightforward to be honest. You just need to explain that this is a compulsory government initiative. The Company is obliged to enrol him. However, you can then explain the process for going straight back out.I have one Employee who is 62 and resolutely refuses to join.
I processed a number of people who were in and out the same month.
As soon as they get their paperwork through there will be an option to opt out.
It might be a telephone helpline or a website where they can enter a code and that's it.
In three years time they will go in again, and they will have to go through the same procedure to come out.
As long as they do it quick enough, all will be OK. If they leave it too long the deductions will start and although they may stop, they won't get their money back. They'll have a pension with £30 in it (or whatever).
It might be a telephone helpline or a website where they can enter a code and that's it.
In three years time they will go in again, and they will have to go through the same procedure to come out.
As long as they do it quick enough, all will be OK. If they leave it too long the deductions will start and although they may stop, they won't get their money back. They'll have a pension with £30 in it (or whatever).
RicksAlfas said:
As soon as they get their paperwork through there will be an option to opt out.
It might be a telephone helpline or a website where they can enter a code and that's it.
In three years time they will go in again, and they will have to go through the same procedure to come out.
As long as they do it quick enough, all will be OK. If they leave it too long the deductions will start and although they may stop, they won't get their money back. They'll have a pension with £30 in it (or whatever).
You get your contributions refunded if you opt out within the time limit which is quite generous as I recall. Not sure where you're getting your information from but its wrong...It might be a telephone helpline or a website where they can enter a code and that's it.
In three years time they will go in again, and they will have to go through the same procedure to come out.
As long as they do it quick enough, all will be OK. If they leave it too long the deductions will start and although they may stop, they won't get their money back. They'll have a pension with £30 in it (or whatever).
timbo999 said:
You get your contributions refunded if you opt out within the time limit which is quite generous as I recall. Not sure where you're getting your information from but its wrong...
Chill out pal or you'll go pop before you need your pension!The scheme I have used is by Royal London and it allows a month opt out period.
Perhaps other schemes are longer, but I was under the impression they were all based on similar guidelines. People must refer to their own guidelines etc etc.
edc said:
Jockman said:
Should be fun
I have one Employee who is 62 and resolutely refuses to join.
It takes up a lot of management time but it's straightforward to be honest. You just need to explain that this is a compulsory government initiative. The Company is obliged to enrol him. However, you can then explain the process for going straight back out.I have one Employee who is 62 and resolutely refuses to join.
I processed a number of people who were in and out the same month.
We have a few people like Above who are within 1-3 years of retirement and don't wish to be added. At least I can tell them they have no choice but if they wish they can opt out.
The Scheme I am using informs me I can print out an opt out form so if they choose to opt out they can.
As I've said I can understand the reason why they want everyone to join, stopping some employers not wanting to add people. But still to me seems wrong people have no choice on the matter
RemaL said:
I was hoping someone would say once you have started it, that it's straightforward. I'm trying to give all our staff the information and guidance they require. Also making sure they know the scheme we are going to use so they can look for themselves
We have a few people like Above who are within 1-3 years of retirement and don't wish to be added. At least I can tell them they have no choice but if they wish they can opt out.
The Scheme I am using informs me I can print out an opt out form so if they choose to opt out they can.
As I've said I can understand the reason why they want everyone to join, stopping some employers not wanting to add people. But still to me seems wrong people have no choice on the matter
As usual, it is all about the communication and engagement with your employees. I organised for our pension provider to come in and run multiple session on auto-enrolment, the whys and hows etc. Employees were walked through the enrolment process and the opt-out process. All the appropriate documentation and contact support numbers were made available. Dates and timings were confirmed. If they didn't understand there was plenty of time in hand and resource to explain again. I had old and young alike who did not want to contribute to a pension, despite the employer contribution being more than the required amount.We have a few people like Above who are within 1-3 years of retirement and don't wish to be added. At least I can tell them they have no choice but if they wish they can opt out.
The Scheme I am using informs me I can print out an opt out form so if they choose to opt out they can.
As I've said I can understand the reason why they want everyone to join, stopping some employers not wanting to add people. But still to me seems wrong people have no choice on the matter
Truckosaurus said:
The government just wants to be able to say "Everyone has a pension", so is making businesses sign everyone up even if a chunk of people will immediately opt out (although surely it is just 'free money' from your employer).
Free money... I don't know of anyone that hasn't had either an usually annual pay rise cancelled, bonus cancelled, or other perks removed to pay for this.L555BAT said:
Truckosaurus said:
The government just wants to be able to say "Everyone has a pension", so is making businesses sign everyone up even if a chunk of people will immediately opt out (although surely it is just 'free money' from your employer).
Free money... I don't know of anyone that hasn't had either an usually annual pay rise cancelled, bonus cancelled, or other perks removed to pay for this.The people who will do well from this are the people in the pensions industry.
Simpo Two said:
When he said "although surely it is just 'free money' from your employer" I thought he was joking.
The people who will do well from this are the people in the pensions industry.
Not really true - the vast majority of the contributions will be minimum amounts and the costs of administration and investment management will outweigh the fees received. Certainly for the first x years.The people who will do well from this are the people in the pensions industry.
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