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Incorrect deduction on return from maternity leave

Mrs Sobraon was charged 5 times the correct amount to maintain her pension (years of service) on her return to work from maternity leave 11 years ago.

This is an error on the part of the employer who had received guidance on the correct amount of deduction two years earlier (about 1994).

Her employer has just written to her saying oops! and that they intend to return the overpayment via the payroll next month (this is not a time warp message the refund will be in Aug 2008)

Obviously there are some issues to do with NI and PAYE but I would have thought that given it was the employer’s error they should at least have up rated the amount to be returned by the RPI. Does anyone know if there is any statutory (or otherwise) guidance on return of deductions made in error by employers over such a long period?

[FONT=&quot]Thanks Sobraon[/FONT]
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