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Pension Contribution

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  • Pension Contribution

    I live in Scotland. I have been employed by my company since 2010, however I have only ever "Auto Enrolled" on the company pension. When I first started at the company, I was given a contract which stated I can either "Auto Enroll" or I can "Opt In" and pay 5% contribution and the employer would pay 8% contribution. In Nov 2024 I was promoted, and last week I requested to now "Opt In" to the Pension Scheme. I was told by HR that the "old scheme of 8% and 5% contributions is completely closed and has been since 2022, no one can be enrolled into that scheme anymore. The scheme open you can join is the EE contribution of 4% and the Company contributes 5% of your salary. You will be getting issued with this contract as your a long term employee with other benefits that remain but unfortunately the old old scheme is closed."

    When I look at my contract issued as part of my promotion in Nov 2024, it states;
    "Group Personal Pension Scheme
    Subject to satisfying certain eligibility criteria (including you, the Employee, making the required personal contribution
    from your salary) and subject to the rules of such scheme as amended from time to time, the Company shall contribute a
    sum equivalent to 8% of your annual salary into the pension scheme on your behalf. Alternatively, the Company operates
    an auto enrolment scheme. Full details of the schemes are available from the Human Resources department."

    Where do I stand legally on this as I have never received a revised contract on the "new" terms?
    Tags: None

  • #2
    It is a contractual term that relates to there being a Group Personal Pension Scheme in place that you can be enroled in. However, as you have posted the clause also states "subject to the rules of such scheme as amended from time to time". This gives the company the anility to amend the terms of the sheme.

    They do not need to issue a new contract each time the pension scheme rules change.


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