Employer hasn't paid into pension

paddypuma

Hello all, wonder if some of you wiser people could give me some advice!

When I joined my old company, one of the benefits was a 5% of annual salary contribution to a pension of my choice (which was standard life) When I became eligable to join the scheme, I asked to join straight away and the forms were drawn up by an IFA. These were sent to me, which I signed (I opted not to contribute at the time) and then passed these to the company financial controller to finish (DD mandate and get boss to sign off & send back etc)

The IFA kept chasing me up as they never recieved the forms from the employer and every time I asked, I was told they were being dealt with. I've only just realised that the pension was never set up (yes, I should have known but I trusted the company to deal with it)

When I left the company to join another a few months ago, I forgot all about the forms until I was asked if I wanted to join the pension scheme at the new place. I explained what happened with the old company to the new financial controller, who said that my old company had committed fraud by not paying into my pension!

Can you tell me if this is right? In my old contract, it says that I am entitled to join the pension scheme but I wonder if he still has to pay it if he didn't sign off the forms? This was over two years so it would be a lot of money owed to me if he's in the wrong...

Can anyone help with this? Thanks..

dunstonh

I explained what happened with the old company to the new financial controller, who said that my old company had committed fraud by not paying into my pension!

They have not committed fraud.

What you should do is get the old company to pay the contribution they would have paid into the pension. You will have to pay your bit backdated as well. That would be the expectation of what you should get.

MikeJones_2

Hi paddypuma,

I'd suggest you contact The Pensions Advisory Service (TPAS) and register a complaint. An adviser at (TPAS) will then take over the complaint, and do all of the necessary legwork to investigate and mediate.

TPAS offer a free dispute resolution service, so there is no cost to you or the employer. There is a helpline on 0845 601 2923.

In terms of 'loss', you could argue that not only have you lost out on the employer's contribution - but you could have lost out on investment 'performance' too. Even though most sectors/markets have declined, this would likely have led to you buying more 'units' in the current economic climate (depending on where you would have invested), presuming the scheme was a money purchase plan.

I hope you resolve the situation to your satisfaction and I'd be interested to know how it pans out, if you don't mind sharing the outcome with us in the future.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.