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Category: Employment Law
Satisfied Customers: 325
Experience:  Expert
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I have worked for the same company for almost 25 years, the

Customer Question

Hi I have worked for the same company for almost 25 years, the company offered a Defined Benefit pension scheme as part of the job offer pakcage when I started.. The company contibute towards this each month ( approx 30%) and staff 5%, Now they want to close this scheme and have created another Defined Contribution Scheme whereby they would now contribute a lot less ( approx 6-8%), are there any grounds for staff members involved in the original pension scheme to ask for compensation from the company? i.e. an increase in staff salary towards the loss of contribution
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: HR and manager, but not getting a response
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: employee, not a union member
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no, I know the compnay can and will be closing the Defined Benefit SCheme pension, but I would like to know whether they are obliged to compensate the staff members financially who are being asked to move to the new pension scheme?
Submitted: 12 days ago.
Category: Employment Law
Expert:  MatthewM1117 replied 12 days ago.

Good afternoon, thank you for contacting Just Answer my name is***** am a solicitor and I will be assisting you  today. I am sorry to hear about your current circumstances, is the defined benefit pension scheme contained in your contract of employment?

Customer: replied 12 days ago.
A pension scheme is mentioned in the contract but not the actual type of pension being offered
Customer: replied 12 days ago.
as the Defined Benefit Pension Scheme has been in place for 25 years, is this an 'implied' term of contract?
Expert:  MatthewM1117 replied 12 days ago.

Thank you for the confirmation as the contribution is not mentioned in the contract of employment you are not contractually entitled to that level of contribution. The pension scheme is an express term contained in the contract and usually express terms override implied terms of the contract it is whether the level of contribution amounts to an implied term. It is also usual to see a clause in the contract of employment which prevents terms being implied into the contract.

However that being said I would encourage you and your colleagues to write a collective grievance to the employer and as a resolution you could propose an increase in salary to offset the loss in pension contributions.

Customer: replied 12 days ago.
Thank you that's really helpful
Expert:  MatthewM1117 replied 12 days ago.

Glad to be off assistance, if you require any further assistance I will be happy to assist in the future.