I will shortly be starting a new job at a company where they have a contributory pension scheme. They documentation says that they will pay 3% of my salary if I contribute 1%. They only offer this to employees over 30 years old, which I am not.
Is this unlawful under the new Age Discrimination Act of 1st October 2006?
I would like to take up the offer though as I feel it’s a good deal and I’m always planning for my future.
2007-02-08 05:58:58 · 5 answers · asked by markus_2k7 1 in Business & Finance ➔ Investing
I work in HR, but am not a benefits expert. However, my instinct is that this is illegal under the new legislation. It could be as simple as they have forgotten to update their offer documentation, or it could be a decision to see if anyone challenges. I would ask whether this is planning to be reviewed in light of the new legislation and see what their reaction is. If they don't offer you the opportunity to join before you are 30, I recommend you contact the Citizen's Advice Bureau or ACAS - both of whom should be able to advise you. Good luck.
2007-02-08 06:05:17 · answer #1 · answered by Bev H 2 · 0⤊ 0⤋
I am not completely sure but I have heard that if the rules of the pension scheme were in force before the new Act then they are OK. I paid 6% of my salary into my company's pension scheme and the company paid in 8% - I retired after 20 years in the scheme with an income less than half of my final salary - so it might be wise to shop around a bit if you want to plan for your retirement and get some advice from pension experts.
2007-02-08 14:06:06 · answer #2 · answered by blondie 6 · 0⤊ 0⤋
This is probably because people over 30 have less time in which to build up a fund. It's worth contributing to a pension anyway. the sooner you start, the better off you will be.
2007-02-08 14:58:16 · answer #3 · answered by gerrifriend 6 · 0⤊ 0⤋
My understanding is that there is no requirement for the same contract to be offered to all employees, even if they are all doing the same job. Might be an idea to speak to the Citizens Advice Bureau though just to check.
2007-02-08 14:03:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
This will almost certainly be unlawful under the act and I assume they have not yet updated their paperwork to reflect the new law.
Yes, it does sound to be a good offer!
2007-02-08 14:02:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋