WORKERS are being warned to check their workplace pensions following a rise in complaints about schemes.
Whistleblower reports about workplace pensions schemes have leapt up in the last year, new figures revealed in a Freedom of Information request by The Sun to The Pensions Regulator (TPR) show.
TPR, which oversees workplace pensions, received 9,487 “whistleblowing reports” between January 2023 and February this year, the FOI found.
The regulator chose to investigate 455 of those reports in more detail.
The latest figure indicates a huge increase in complaints last year.
In the year 2022/23, just seven complaints were recorded, although it is understood TPR changed the criteria for reports during that period.
However, the latest figure is still significantly higher than the total recorded in the year 2021/22, when just 7,476 reports were made.
Employees enrolled in workplace pension schemes can report their scheme to TPR if they have concerns about how it’s being run.
For example, they can flag if they are being underpaid pension contributions, or if they believe the scheme is being mismanaged.
Currently, anyone over 22 and earning over £10,000 a year should be “automatically enrolled” into their company’s workplace pension, although they can opt out if they want to.
Workers must pay at least 5% of their salary in, while their employer must pay 3%.
TPR will formally investigate pension schemes if it believes there is reason to do so, and it may fine companies which are found to be breaking the rules, for example by not auto-enrolling staff.
Experts are now urging workers to ensure they are in their workplace scheme and to check their pension contributions are correct.
You can check your payslips to see whether pension is being taken from your salary and work out if your contributions are enough.
Ask your employer for more information on your scheme if you’re not sure.
Former pensions minister Steve Webb, now partner at pension consultants LCP, said: “If you’re eligible for auto-enrolment, check to make sure you are getting the contributions you’re entitled to.
“People who earn over £10,000 per year have a right to be put into a pension scheme by their employer.
“But it can be difficult to complain when they fail to do this, especially if you work for a small firm.
“So, I would encourage anyone who has been deprived of their right to a pension to make a complaint to TPR, which has the power to fine firms who do not comply with the law”.
HERE's what you need to know about pensions auto-enrolment:
What is pension auto-enrolment?
Since October 2012, employers have had to enrol their staff into workplace pension schemes as part of a government initiative to get people to save more for retirement.
When does auto-enrolment apply?
You will be automatically enrolled into your work’s pension scheme if you meet the following criteria:
How much do I contribute?
There are minimum contributions that you and your employer must pay.
Your minimum contribution applies to anything you earn over £6,240 up to a limit of £50,270 in the current tax year. This includes overtime and bonus payments.
A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.
What if I have more than one job?
For people with more than one job, each job is treated separately for automatic enrolment purposes.
Each of your employers will check whether you’re eligible to join their pension scheme. If you are, then you’ll be automatically enrolled in that employer’s workplace pension scheme.
Can I opt out?
You can choose to opt out, but you’ll miss out on the contributions from the government and from your employer. If you do choose to opt out you can opt back in later.
While experts say it’s important to report concerns to TPR, some are concerned about the small number of complaints actually investigated further.
One expert said the regulator simply doesn’t have the capacity to look into every single complaint in detail, so it has to prioritise those where the most money is at stake, more people are affected, or the problem has been going on for a long time.
However, they added that TPR may also write to the company in question and resolve the issue without needing to launch a formal investigation.
Regardless, Becky O’Connor, director of public affairs at PensionBee, said more transparency is needed around how complaints are investigated and dealt with to give people more confidence to report firms.
“The figures suggest the TPR is only investigating a very small proportion of the whistleblower complaints it receives, which could be disheartening to anyone who is thinking about making a complaint,” she said.
“Greater transparency and guidance over the kind of complaint that is likely to be investigated and the kind that isn’t could be helpful to people working out whether they should pursue it.”
If you’re worried your workplace pension scheme and feel you can’t speak to your employer about it, then report the issue to TPR.
For example, if you notice it is underpaying or not paying any pension contributions, or is otherwise not being run properly.
You can complain anonymously if you’re concerned about it impacting your relationship with your employer.
Provide as much information or evidence as you can to support your concerns, such as payslips which may show you’re being underpaid, or any concerning correspondence from your scheme or employer.
For legal reasons, the regulator may not update you on why it does or does not decide to pursue your complaint. But, if it finds sufficient reason to do so, it will launch a formal investigation.
To report a cancer, email report@tpr.gov.uk or you can ring the department on 0345 600 0707.
Alternatively, write to Customer Support, The Pensions Regulator, Telecom House, 125-135 Preston Road, Brighton BN1 6AF.
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