Automatic enrolment pension question
Discussion
My stepdaughter has started her first full time job (waitress in a pub/hotel, circa 30 employees).
The only thing in her contract relating to a pension states the following (exact wording):
‘Should the employee opt to take out a Personal Pension Plan then this is a private matter between the employee and the financial institution concerned, and does not involve the employer in any way’.
The above clause, specific to a personal pension, seems fine. However there is no mention of automatic enrolment to an employers pension.
Pensions regulator states the following:
‘If you have any staff who are aged between 22 up to state pension age and earn over £10,000 per year, or £833 per month or, £192 per week, you must put them into your pension scheme and you must both pay into it‘.
My stepdaughter has had 2 pay slips so far, and the only deductions are for income tax and national insurance. She is 23 and gets £9/hr on a 37 hour per week contract, so above the earnings threshold.
Could someone please advise, and how I progress this?
The only thing in her contract relating to a pension states the following (exact wording):
‘Should the employee opt to take out a Personal Pension Plan then this is a private matter between the employee and the financial institution concerned, and does not involve the employer in any way’.
The above clause, specific to a personal pension, seems fine. However there is no mention of automatic enrolment to an employers pension.
Pensions regulator states the following:
‘If you have any staff who are aged between 22 up to state pension age and earn over £10,000 per year, or £833 per month or, £192 per week, you must put them into your pension scheme and you must both pay into it‘.
My stepdaughter has had 2 pay slips so far, and the only deductions are for income tax and national insurance. She is 23 and gets £9/hr on a 37 hour per week contract, so above the earnings threshold.
Could someone please advise, and how I progress this?
Your next steps are entirely passive. Your stepdaughter on the other hand, should be pressing the employer to contribute to whichever scheme they choose, and making it very clear that they do NOT opt out, and expect to receive updates on her shiny new pension. She should be aware that she must also contribute, and that the employer can defer for up to three months (and then make a lump sum payment in month 4). I suspect most bar staff aren't overly keen on pension deductions, so maybe the employer assumption is that nobody wants it.
randlemarcus said:
Your next steps are entirely passive. Your stepdaughter on the other hand, should be pressing the employer to contribute to whichever scheme they choose, and making it very clear that they do NOT opt out, and expect to receive updates on her shiny new pension. She should be aware that she must also contribute, and that the employer can defer for up to three months (and then make a lump sum payment in month 4). I suspect most bar staff aren't overly keen on pension deductions, so maybe the employer assumption is that nobody wants it.
Sadly, I will have to progress it - she’s totally lacking in self confidence or understanding of financial matters, and is terrified that if she brings this up she will lose her job. Yes, I know.ChevronB19 said:
Sadly, I will have to progress it - she’s totally lacking in self confidence or understanding of financial matters, and is terrified that if she brings this up she will lose her job. Yes, I know.
My sympathies, but please encourage her to do this herself. She SHOULDN'T get fired for asking politely, but if she does, it's highly likely that she would also get fired for a helicopter parent asking 
Trophy Husband said:
2 sMoKiN bArReLs said:
Wouldn't it be easier for her to ask one of her workmates? (first off). That is if they pay pension, and if so how it works.
.This.
But get her to ask a long term member who won't be risking the bullet for asking the employer if AE is not in place!
AE is a legal requirement, but I think that it starts after 3 months continuous employment for each employee. At that point she should receive all the communications material, often from the pensions provider chosen by the employer rather than from the employer itself. She will have the ability to opt out if she wishes but she must make the decision and communicate it within the stated time frame
As this is, apparently, a new employer, maybe they have not got round to, or have overlooked, their AE responsibilities.
R.
As this is, apparently, a new employer, maybe they have not got round to, or have overlooked, their AE responsibilities.
R.
The Leaper said:
AE is a legal requirement, but I think that it starts after 3 months continuous employment for each employee. At that point she should receive all the communications material, often from the pensions provider chosen by the employer rather than from the employer itself. She will have the ability to opt out if she wishes but she must make the decision and communicate it within the stated time frame
As this is, apparently, a new employer, maybe they have not got round to, or have overlooked, their AE responsibilities.
R.
Appreciate the reply. Where she is working is a new pub/hotel, but run by a company that already has a couple of similar places.As this is, apparently, a new employer, maybe they have not got round to, or have overlooked, their AE responsibilities.
R.
My current thoughts is her to post on the employee WhatsApp group asking (in a very polite way) if anyone could give her any more details, then leave it until the suggested 3 months continuous employment. My real concern is as per my original post about her contract, where the only mention of pensions is in essence ‘if you want a private pension, up to you, but don’t involve us’.
She’s a very (very) shy person with a few other problems and she shies away from any challenge, including ones which could have significant financial implications when she’s in her later years. I won’t lie, it’s difficult, but I’m trying to do my best in her behalf because I know she wouldn’t because to her it’s too difficult/challenging.
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