Policy/Law on backdated pension contribution

ghoshstud

I am elligible for pension (3% self contribution and 8% employer contribution) since jul 2008. The day our pension agent was to come to the office, explain the policy and sign us up, I was unfortunately out on client visit.

Since then, for some reason or the other, I could not sign up for the pension; either because I was caught up with office work or the HR/agents were busy.

I finally escalated the matter recently to the senior HR people. Now, they have moved things and I am enrolled. However, HR is refusing to backdate the pensions since Jun 2008. I told HR to atleast give 8% employer contribution to me, but HR says that as per law, pension cannot be backdated.

I am feeling shortchanged and wanted to know if there is any policy/law on backdating the employer contributions for pensions.

Any advice/guidance will be highly appreciated.

Regards
Ghoshstud.

Savvy_Sue

If there is a law against it, our organisation has been breaking it ... and the pension provider hasn't said anything about it, even though it must be obvious that's what we're doing ...

That's for the employer contributions - it may be different for the employee contributions which attract tax relief.

rupee99

The only "law" against it would be if you broke the maximum contribution rules and that would only affect the tax treatment. Unless you are very highly paid these rules are unlikely to affect you.

There may be some pension scheme rules that prevent back-dated contributions, but these usually affect defined benefit (final salary) schemes, it would appear that yours is a defined contribution. There is nothing to prevent them, in law, giving you the 8% they would have paid into the pension scheme but it would be subject to tax and national insurance, whereas pension contributions are not.

jdturk

ghoshstud wrote: »

I am elligible for pension (3% self contribution and 8% employer contribution) since jul 2008. The day our pension agent was to come to the office, explain the policy and sign us up, I was unfortunately out on client visit.

Since then, for some reason or the other, I could not sign up for the pension; either because I was caught up with office work or the HR/agents were busy.

I finally escalated the matter recently to the senior HR people. Now, they have moved things and I am enrolled. However, HR is refusing to backdate the pensions since Jun 2008. I told HR to atleast give 8% employer contribution to me, but HR says that as per law, pension cannot be backdated.

I am feeling shortchanged and wanted to know if there is any policy/law on backdating the employer contributions for pensions.

Any advice/guidance will be highly appreciated.

Regards
Ghoshstud.

Maybe telling your colleagues wasn't the way to go about it! Have you actually been paying the 3% each month since June, if not then the policy hasn't started as I see it, if you have bee paying it then I would be asking for the back payments.

ghoshstud

Savvy_Sue wrote: "If there is a law against it, our organisation has been breaking it ... and the pension provider hasn't said anything about it, even though it must be obvious that's what we're doing ... "

Hi Sue, I am sorry, but I did not get what you meant. Do you mean that I have the right to ask my employer to pay the 8% since Jun 08?

I do not mind paying taxes (if any) for the back dated payments nor do I want to claim any tax refunds (if any). I just want my employer to pay the 8% since Jun 2008. I have not been contributing my 3%, as I could not enroll into the pension schemes.

Please help everyone.

Thanks
Ghoshstud

Savvy_Sue

You asked if there was a law against a company backdating the employER's contributions. I'm saying that if there is, our company has been breaking it. I think the most I've backdated by is between 1 and 2 years, and it must have been obvious to the pension provider that that's what we were doing.

No-one's ever asked me to backdate their personal contributions.

Of course your company may have its own policy about not backdating. That's a different matter, and if it had been you messing them about (by not filling in forms etc) then it would be fair enough.

However, since you feel it's them not you doing the messing about, putting in a grievance about this (as per company policy) could be the way to go.

Although I've always handed the forms out and asked people to fill them in, referring any questions to me so that I can refer them to the pension provider if I can't answer them!

Procrastinator333

As pointed out above, it is only be illegal if very large annual limts were broken. So most likely they are simply mistaken, or trying to use it as an excuse not to do it.

However I don't believe it is a right. Have a look at your employment contract. Unless it specifically states it is allowed, I don't think there is much you can do.

Also, if anything, they will take your 3% and the 8%, they are not going to just make the employer contribution! So if you do get them to do this, you will end up with almost Zero pay in whichever month they do it.

Also, I'm sorry to say, 18 months, to me that suggests you can't actually have been trying too hard...

rupee99

ghoshstud wrote: »

.....................

Please help everyone.

Thanks
Ghoshstud

We cannot "help."

There is not any law against it, neither is there any law compelling your employer to make the contribution.

Look on the pension scheme as an adjunct to your contract of employment requiring a new contract, rather than something integral to it. As a contract it requires "offer and acceptance," although that is not required in writing by law, it almost certainly is in the scheme rules (that will form the terms of the contract). The employer will almost certainly not be obliged to make payments before you joined and unless you can prove that they were either negligent or deliberately prevented you from joining earlier you will have a pretty hard job persuading a court or tribunal that your membership should be backdated.