Are workers still entitled to pension scheme participation when they reach state pension age?
Currently, when a worker reaches their 66th birthday they are not auto-enrolled into a Workplace Pension Scheme, as they hit the State Pension Age. But this does not mean they are excluded from a scheme where both the employer and employee continue to contribute. This legal right continues until the worker reaches their 74th birthday while remaining in work.
While there is no legal obligation to participate, or opt-out as per the auto-enrolment scheme, but by failing to make this available and to offer a pension scheme to such workers could be deemed discriminatory on the grounds of Age, and a breach of Pensions laws.
Why mention this? While outsourced payroll companies, and payroll software, tend to provide a great ‘value for money service’, we do find that most are process-driven and not employment law specialists. Workers who are 66 years old or over can raise a grievance and be entitled to claim unpaid contributions and interest dating back to their 66th birthday, or when they fell outside of the auto-enrolled workplace scheme.
Need advice on this or any other HR or employment law matter then call our team of lawyers on 03456 122 144.