How to avoid paying any contributions before opting out of auto pension enrolment?

[chrisk]

Hi,

Hope someone can advise on this or let me know if they have encountered a similar situation.

I have received an email from my umbrella company (I won't name them for now) regarding my auto enrolment into a pension scheme in accordance with new government legislation. I expected this and intend to opt out at the earliest opportunity.

The issue that I have is that my enrolment date is one day before my usual pay day. The mail I got about the enrolment states the following regarding opting out:

---------------
You can choose to opt out (for example, if you'd rather save for your retirement in another way) but only after you have been automatically enrolled or opted in to the Auto Enrolment pension scheme. You will need to opt out within a specified time period to get your contributions back.

You can also leave the scheme whenever you wish after the opt-out period and the contributions made will remain in the scheme and be available to you on your retirement. More details about the "opt out" process will be provided if and when you are automatically enrolled (or choose to opt in) so that you fully understand your rights.

----------------
So it sounds like I will not be able to avoid making a contribution and then having to claim it back. I don’t think this is on at all. I think my umbrella should do what it can to avoid me having to pay money into a scheme that I don’t want to use. I have spoken to them and they have indicated that my enrolment date was not their choice - although I find this hard to believe.

So has anyone else encountered this? And has anyone found that their enrolment date is very shortly before their pay day? Does anyone know if the enrolment date is decided by the umbrella or not?

Many thanks in advance for any help.

CH

[northernladuk]

Staging date timelines are here..

Pensions reform - staging dates timeline | The Pensions Regulator

[chrisk]

Thats great thanks - although it has puzzled me further. Im not sure how many employees the umbrella I work for has but it is one of the two biggest. I have been given a deferral date of 06/06/2013 (when I am auto enroled on the scheme) and told I have the option to join from 01/04/2013.

I usually get paid monthly by them on the 7th - so if (and this is what I dont know about) they have chosen that date of 06/06/2013 I wouldn't be very happy about it.

Cheers

CH

[northernladuk]

Might have been more useful to post this in the Umbrella section and not General TBH

[chrisk]

Fair enough.

Apologies for that.

Thanks for moving it.

CH

[Andy Hallett]

I am presuming who the company is.

I would suggest giving them a call in the first instance. You will be in the same boat as 1000's of other contractors so I'd imagine your situation and requirements will be far from unique.

[LisaContractorUmbrella]

As with all other employers in the UK umbrella companies have no option other than to implement the pensions auto enrolment; the staging dates are set by the Government and are dependent on the size of the umbrella company - the bigger the company, the earlier the staging date. Unfortunately, we have all the same obligations as any other employer so there is nothing we can do as an industry to make it easier for contractors to opt-out, we have to comply with the procedures that have been laid down in law.

[chrisk]

Thanks Lisa.

Someone helpfully posted a link to the staging dates in the first reply to my post. I am fairly sure that my umbrella falls into one of the following bands:

120,000 or more 1 October 2012
50,000-119,999 1 November 2012
30,000-49,999 1 January 2013

My email from my umbrella says the following:

We have, as allowed by law, postponed your automatic enrolment in to our Auto Enrolment pension scheme until 06/06/2013, also known as the 'deferral date'.

This is the disparity I don't understand. Are you saying that this date of 06/06/2013 is set by the government - so my umbrella says to the government we want to defer this date - and the government said - ok - the new date has to be 06/06/2013? Which just happens to be the day before I get paid? Which just happens to mean I won't have any chance of opting out before I make forced contributions?

Im asking around to see if all employees of this umbrella have been given the same date.

Cheers

ChrisH

[chrisk]

Just seen this on their website:

As XXXXXXX is the employer, we will be required to enrol our eligible workers into a workplace pension starting from 1st April 2013.

This suggests to me that the 06/06/2013 date is decided by XXXXXXX.

What do you think?

Thanks

ChrisH

[LisaContractorUmbrella]

The staging date is implemented by the Government but the employer can opt to defer for 3 months - more info here Pensions Express