Company pension - compulsory?

maximoose

I have just turned 25, and in my company it is standard policy that you are signed up to a private company pension scheme once you hit that age.

If this was a job I planned to stay in for more than the next 6 months, I wouldn't really mind - but it's not.

I spoke to our HR representative yesterday and asked him was this a compulsory scheme, to which he gave me a waffley answer about how 'compulsory' is an "emotive word" and he doesn't want to say that and went on a spiel about how it's the "best policy for employers" etc. So then I asked is there ANY option to opt-out and he simply said "no".

Looked over the T&Cs in my contract lastnight and here is the relevant bit:

You will become eligible to joing the XXXX pension plan in the month following your 25th Birthday.

It is intended that you will be included in a company pension plan for which you will be required to make a contribution of XXX of salary from the month following your 25th birthday

"Intended" to me does not mean compulsory, but what do you think?

Is there any legal basis that requires me to start a pension at this age? Some colleagues think it is a goverment requirement but I cant find anything concrete online, planning to ring the CAB this morning but would like any advice I can get here also!

tony81

The CAB? Criminal assets bureau? Not sure how they can help.

Anyway, there's no legal obligation to join pension scheme but it's clearly a company policy (intended/required makes it clear you have to join) and you were aware of that line in your contract. No point arguing.

minihanet

You should avail of this opportunity to start a pension as more than likely the company will contribute as well. As far as I know,unless legislation has changed,if you leave service within 2 years of joining the scheme,you will be entitled to a full refund of contributions(less the tax relief you have claimed). If you leave after 2 years you can still take all contributions with you and transfer to your new employer

maximoose

tony81 wrote: »

The CAB? Criminal assets bureau? Not sure how they can help.

Woops, I'm from NI and still used to talking about the Citizens Advice Bureau :pac: Citizens Information Bureau is it here?

Hmm yeah I can see how they could argue the "intended" means it is non negotiable, but it seems a bit ambiguous to me. Just found out there is another in the company questioning the same thing so think we may both meet with HR today to discuss

You should avail of this opportunity to start a pension as more than likely the company will contribute as well

They do contribute, and TBH it is quite a good scheme. But my reason for not wishing to join is I hope to be gone out of the company soon and possibly to another country, so I'd much rather have the cash in my bank account than in a pension that'll never grow to any real value.

homer911

If you leave within 2 years, you only get a refund of your own contributions, after two years, you wont get a refund, but you get to keep the company contributions.

At your age, there is plenty of time for this to grow into a tidy capital sum, so dont disregard the opportunity without giving it proper thought

Neo7

Hi, not all pension schemes are compulsory. For some pension schemes you can opt out if you wish but have in mind that there will be no employer contributions paid on your behalf either. You need to check with your pensions administrator if the scheme is compulsory or you can opt out. This is determined by the Trust Deed and Rules. If you can opt out, then you should request an Opt Out form from your pensions administrator, sign and forward to your HR manager. I hope this helps.

Shedite27

maximoose wrote: »

If this was a job I planned to stay in for more than the next 6 months, I wouldn't really mind - but it's not.

Pay the contributions, you can get it all back when you leave in a couple of months