I used to work at a private high school, and part of their contract was that they would pay a portion of your wage into a private pension, but you lost it all if you left the job before the end of a (very) long time period. So long that basically nobody will ever collect. The school, including very friendly admins, assured us that this was all above board. When we asked about contributing to the government pension fund instead, we were told that private schools were allowed to offer a private one instead and not give us the choice which to use.
Later I started work at a public school, where of course they paid into the government pension on my behalf. As part of explaining the pension payments, they told me it would be added to what I had already contributed from my previous school. I told them about the private pension, and the immediate reaction was a shocked face and “But… that’s illegal!” I asked them to look into this further to see if I could claim that money back. They spoke to some people in the labor department who said I would need to return to my previous city to apply for mediation.
Does anybody here either have a) definitive knowledge of what the rules are regarding private schools and pensions, or b) contact details for an English-speaking lawyer I could approach for a consultation? My current coworkers all seem to think the previous school was breaking, or at the very least bending, the relevant laws. I want to make sure before I make any moves though. A ruling in my favor would mean them paying out for other workers, not just me, and will ruin the goodwill I have with them. Because of that I want to be really sure before I do anything.
A staff member who resigns without meeting the requirements to receive any retirement or severance pay may collect the principal and interest in his or her individual Retirement and Compensation Fund account in a lump sum.
Article 23
Staff severance payments shall be calculated using the standards for lump-sum payments.
That’s the kind of thing I was looking for, thanks. I’m now hoping that this will override what was in our contracts. I’m operating under the assumption that any part of a contract which breaks the law would be void.
Mediation will only work out in your favor if both sides agree, i.e. if your former employer is persuaded it’s easier to settle than to get inspected, potentially fined, and/or sued. If it fails, you can formally complain and request an inspection (I think that would be the Bureau of Labor Insurance’s jurisdiction, not the Department of Labor’s), and if necessary you can launch a civil suit.
For best results in mediation ask the Department itself to conduct the mediation rather than letting them outsource it.
You can get a free short consultation with a lawyer at the Legal Aid Foundation or (sometimes) at the Department of Labor. Also, paging @Marco…
Thanks for that, I was actually meaning to talk to the Legal Aid Foundation last night but got sidetracked. Will do it this evening. I’m wanting to talk to them first to see what my options would be, such as whether I could viably sue and if the threat of myself and all the other staff affected (maybe up to 15 total over the years they’ve had the pension in place) taking action might be enough to make them settle.
don’t know if applicable to anyone, but if you move to the pension system for public school teachers, the years in the pension system for private school teachers can be transfered. it cannot be done if you collect the principal and interest from your account. iiuc
From what I’ve heard from my current school, that only applies if the private school was using the public pension system rather than a private one. Because they used a private pension, and stipulated that you cannot receive any money unless you stay there for an insane amount of time, they say no dice. Going to still have to go to mediation to get the money in order to transfer it to my current pension. I don’t want the money just so I can go on a spending spree, it’s for retirement.
Article 7
Any years of service during which a principal or teacher was formerly employed as a paid, full-time, qualified principal or teacher within the staff complement of a private school, for which no pension, separation pay, or severance pay has yet been approved and paid and for which written verification has been provided by his or her former employing school, may be included in the person’s years of service, and his or her pension, bereavement compensation, or severance pay shall be calculated and paid in accordance with the following provisions: …
note
the pension system for public school teachers is different from the labor pension.
I mean the private school used their own private pension fund. They did not contribute to the public pension fund which is used by public schools. They claimed they were not obliged to contribute to the public fund because they are a private school, although admin at my current schools disagree with this, and they were the ones who told me to seek mediation after they checked with the labor department.
I really appreciate you pointing these articles out. I’ve got a pretty broad base of knowledge to draw from, but law is definitely not a part of it!