Hundreds of thousands of workers are missing out on pension contributions because they have more than one job.
Auto-enrolment rules mean contributions are calculated on a band of earnings between £5,824 and £43,000.
This test is applied for each individual job, so people with multiple employers miss out on the first £5,824 each time.
Provider Now: Pensions has 10,682 members – about 6 per cent of all its active members – who have at least two employers on its systems who happened to also have picked the firm for auto-enrolment.
The provider is the third-largest master trust behind the People’s Pension and Nest, suggesting the total number of auto-enrolled employees with multiple jobs is likely to be in the hundreds of thousands.
Now: Pensions director of policy Adrian Boulding says: “What worries me, what we didn’t foresee, is that there a lot of people with two part-time jobs. That means the £5,824 gets knocked off each and every employment and it seems to be a feature that has come into the labour market since the 2009 financial crash and recession.
“There was very little job loss, but a lot of employers put people on part-time work. I would get rid off the cut-off and say all earnings should count for pensions.”
Around six million people have been auto-enrolled since the programme launched in October 2012. However, around five million have been assessed but not enrolled because they failed to meet the criteria.