[Finance] Nest Pension. Some help please...

The Clamp · May 21, 2019

On the 3rd May this year I received an email from my work (to all employees) telling us we were to be enrolled in a Nest pension scheme from the 9th May. A welcome pack would arrive with an ID number to use if we wish to opt out.
For reasons too boring to go into I had already opted out of the last work organised pension scheme and made it very clear I was not going to enrol in any other.
The welcome pack doesn’t arrive.
No ID can be given over the phone.
Come the 14th, pay day, several hundred pounds is deducted from my wages in “back pension” and May. contribution.
The welcome pack arrived yesterday.
I raise this at work, they “need to speak to Nest”.
I rang Nest, they cannot process opt outs currently due to a “technical issue” and anyway they couldn’t issue a refund as they haven’t t received the funds that my work has deducted from my wages.

Work just telling me they are “looking into it”.

What is going on do you think?

Munkfish · May 21, 2019

The Clamp said:
On the 3rd May this year I received an email from my work (to all employees) telling us we were to be enrolled in a Nest pension scheme from the 9th May. A welcome pack would arrive with an ID number to use if we wish to opt out.
For reasons too boring to go into I had already opted out of the last work organised pension scheme and made it very clear I was not going to enrol in any other.
The welcome pack doesn’t arrive.
No ID can be given over the phone.
Come the 14th, pay day, several hundred pounds is deducted from my wages in “back pension” and May. contribution.
The welcome pack arrived yesterday.
I raise this at work, they “need to speak to Nest”.
I rang Nest, they cannot process opt outs currently due to a “technical issue” and anyway they couldn’t issue a refund as they haven’t t received the funds that my work has deducted from my wages.

Work just telling me they are “looking into it”.

What is going on do you think?

You should recieve cancellation rights for the setting up of the new policy, envoke these as soon as you can, as your Pension should then be shut and any monies due to be paid by your company should be rejected by Nest.

I would suggest the responisbility falls with your company, keep on at them to find out whats happened.

Munkfish · May 21, 2019

The Clamp said:
On the 3rd May this year I received an email from my work (to all employees) telling us we were to be enrolled in a Nest pension scheme from the 9th May. A welcome pack would arrive with an ID number to use if we wish to opt out.
For reasons too boring to go into I had already opted out of the last work organised pension scheme and made it very clear I was not going to enrol in any other.
The welcome pack doesn’t arrive.
No ID can be given over the phone.
Come the 14th, pay day, several hundred pounds is deducted from my wages in “back pension” and May. contribution.
The welcome pack arrived yesterday.
I raise this at work, they “need to speak to Nest”.
I rang Nest, they cannot process opt outs currently due to a “technical issue” and anyway they couldn’t issue a refund as they haven’t t received the funds that my work has deducted from my wages.

Work just telling me they are “looking into it”.

What is going on do you think?

https://www.nestpensions.org.uk/schemeweb/nest/members/my-nest-pension.html

The top PDF, Page 26.

If you decide you don’t want to be a member
of Nest you can opt out during the opt-out
period. This is normally a one month period
that starts after your employer enrols you.
You can find this date in the welcome letter
we sent you when you joined.
If you choose to opt out, you’re only opting
out of Nest with the employer mentioned in
that letter. If another employer enrols you,
either now or in the future, and you want to
opt out you’ll need to do it again.
If you opt out, any money you’ve contributed
with this employer will be refunded, but you
should think carefully before you opt out. Any
contributions made to your pot during your
opt-out period won’t be invested until after
this period ends. That means that your
contributions won’t earn any interest or
investment growth during the period.
Opting out means you’ll lose out on
employer contributions and tax relief that
would have gone into your retirement pot.
After the opt-out period has passed, you can
still choose to stop making contributions but
you won’t get a refund of any contributions
you’ve already made. Your contributions will
stay in your Nest retirement pot until you
reach the age when you can take your
money out.
If you decide to opt out you can do it in the
following ways:
online
post
telephone
To opt out online or over the phone, we’ll
need to confirm your identity. We’ll ask you
for your:
• Nest ID
• date of birth
• National Insurance number or the
alternative identifier your employer gave
you when they enrolled you.

The Clamp · May 21, 2019

Thanks Munk

See, last time my employer put me in a pension scheme I found out they had been deducting from my wage but not paying it to my pension fund. Which is why I told them never to enrol me in another workplace pension.
Annoying as I miss out on their contributions but I cannot risk my pension.
Now it appears they are doing the same thing but with Nest.

Gazwag · May 21, 2019

The Clamp said:
On the 3rd May this year I received an email from my work (to all employees) telling us we were to be enrolled in a Nest pension scheme from the 9th May. A welcome pack would arrive with an ID number to use if we wish to opt out.
For reasons too boring to go into I had already opted out of the last work organised pension scheme and made it very clear I was not going to enrol in any other.
The welcome pack doesn’t arrive.
No ID can be given over the phone.
Come the 14th, pay day, several hundred pounds is deducted from my wages in “back pension” and May. contribution.
The welcome pack arrived yesterday.
I raise this at work, they “need to speak to Nest”.
I rang Nest, they cannot process opt outs currently due to a “technical issue” and anyway they couldn’t issue a refund as they haven’t t received the funds that my work has deducted from my wages.

Work just telling me they are “looking into it”.

What is going on do you think?

The issue with Nest having technical issues is probably because as its 3 years since 90% of businesses had to start auto enrolment they are now into the re-enrolment phase as every business who is registered as to re-register every three years. As part of the re-registration every employee who opted out is automatically opted back in without any postponement period so they have a window of around 30 days to opt out again, hence Nest are probably very busy.

Crazy rules.

If you opt out in time you will get the money back next month through your wages and the firm will get it back from Nest. Again not ideal. Although your firm should not have deducted any back payments.

The Clamp · May 21, 2019

Gazwag said:
The issue with Nest having technical issues is probably because as its 3 years since 90% of businesses had to start auto enrolment they are now into the re-enrolment phase as every business who is registered as to re-register every three years. As part of the re-registration every employee who opted out is automatically opted back in without any postponement period so they have a window of around 30 days to opt out again, hence Nest are probably very busy.

Crazy rules.

If you opt out in time you will get the money back next month through your wages and the firm will get it back from Nest. Again not ideal. Although your firm should not have deducted any back payments.

Cheers. Yeah, the back payment is a mystery. Supposed to be enrolled from 9th May.

theboybilly · May 21, 2019

While I understand your reasons for opting out the first time is it not worth investigating further while you have a little time left to see if Nest are worth going with. Losing those company contributions might cost you so much further down the line.

The Clamp · May 21, 2019

theboybilly said:
While I understand your reasons for opting out the first time is it not worth investigating further while you have a little time left to see if Nest are worth going with. Losing those company contributions might cost you so much further down the line.

Yes. I plan on opting out, getting my refund and then opting back in and keeping a very close eye on it. They should not have taken the several hundred in “back payments” so once that’s restored I plan on opting back in.

Munkfish · May 21, 2019

The Clamp said:
Thanks Munk

See, last time my employer put me in a pension scheme I found out they had been deducting from my wage but not paying it to my pension fund. Which is why I told them never to enrol me in another workplace pension.
Annoying as I miss out on their contributions but I cannot risk my pension.
Now it appears they are doing the same thing but with Nest.

Not sure thats the case, I have never worked in Payroll however I get paid on the 25th, my pension contribution goes in on the 10th, I dont know the reason behind this but it certainly goes into my account. You are missing out on a decent amount of money you are entitled too. Id suggest you make yourself familer with the overal process rather than just opting out.

Munkfish · May 21, 2019

theboybilly said:
While I understand your reasons for opting out the first time is it not worth investigating further while you have a little time left to see if Nest are worth going with. Losing those company contributions might cost you so much further down the line.

Absolutely this. I just replyed above before I saw this comment.

The Clamp · May 21, 2019

Munkfish said:
Not sure thats the case, I have never worked in Payroll however I get paid on the 25th, my pension contribution goes in on the 10th, I dont know the reason behind this but it certainly goes into my account. You are missing out on a decent amount of money you are entitled too. Id suggest you make yourself familer with the overal process rather than just opting out.

I understand that the payments go on on a schedule and that will always be later than payday. I have had company contributer pensions since 1996 and never had these issues before.
My problem with them last time was that after four months not a penny had been paid into my fund. I lost interest and investment.
I will opt in to this pension again to get the employer contributions but only once they have refunded me the money they deducted.

vegster · May 21, 2019

The Clamp said:
On the 3rd May this year I received an email from my work (to all employees) telling us we were to be enrolled in a Nest pension scheme from the 9th May. A welcome pack would arrive with an ID number to use if we wish to opt out.
For reasons too boring to go into I had already opted out of the last work organised pension scheme and made it very clear I was not going to enrol in any other.
The welcome pack doesn’t arrive.
No ID can be given over the phone.
Come the 14th, pay day, several hundred pounds is deducted from my wages in “back pension” and May. contribution.
The welcome pack arrived yesterday.
I raise this at work, they “need to speak to Nest”.
I rang Nest, they cannot process opt outs currently due to a “technical issue” and anyway they couldn’t issue a refund as they haven’t t received the funds that my work has deducted from my wages.

Work just telling me they are “looking into it”.

What is going on do you think?

That sounds really bad. My employers are crap but they deferred payments for as long as possible in order to avoid their matching 1% contribution! Any decent pension company) employer should warn you of how much back pension you may owe and take that back over several or many months if it is a lot of cash.

timbha · May 21, 2019

Just catching up so apologies for any duplication.

If what you say is correct what your company is doing is illegal. They cannot withhold transferring your pension contributions to the pensions fund beyond a reasonable period (I think it’s one month). At the very least they should now make up any lost interest/investment growth and suffer any investment losses (but that doesn’t excuse them).

There should be a scheme administrator at your work or a Trustee who you could complain to.
I suspect you work for a small firm?? Are they in any financial difficulties?

The Clamp · May 21, 2019

timbha said:
Just catching up so apologies for any duplication.

If what you say is correct what your company is doing is illegal. They cannot withhold transferring your pension contributions to the pensions fund beyond a reasonable period (I think it’s one month). At the very least they should now make up any lost interest/investment growth and suffer any investment losses (but that doesn’t excuse them).

There should be a scheme administrator at your work or a Trustee who you could complain to.
I suspect you work for a small firm?? Are they in any financial difficulties?

So to be clear, this new pension has only been live since the 9th so I’m not too worried yet. My last pension was the problem. But that did get resolved. They hadn’t done necessary paperwork.
It’s a fairly small company but I know the finances are fine as I have a friend in management there. .
HR is one person.
Payroll is one person.
These things always get sorted but it takes a lot of my time up and you have to study your payslip forensically.

Thank you for replying .

East Staffs Gull · May 21, 2019

If it was me, I wouldn’t opt out, but I would badger my employer to make sure that my and their contributions are paid over to the provider. There are financial penalties for not conforming.

Dorset Seagull · May 21, 2019

I use Nest for my employees and I have to hand over their contributions 2 months after their payday so your company probably hasn’t sent some of the money in yet

Sirnormangall · May 21, 2019

Sounds like your employer has deducted payments from your salary, without your permission, for a pension you’ve told them you don’t want. The employer should repay you immediately - its then the employer’s problem and their responsibility to get the money back from the pension company.

That said, think twice about having a pension - in years to come you may regret not saving for retirement: I can’t see governments of any persuasion being more generous with state pensions.

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