Company delaying putting contributions in- is it 'normal practice'?

gadgetmind

buel wrote: »

So am i right to assume that, legally, the regulator does not HAVE to take any action if an employer takes employees' pension contributions and doesn't pass them on the relevant Pension?

Dunno, but it's always proved close to impossible to get a regulator to do anything they don't want to do. Maybe you need to complain to the regulator in writing and copy the "financial agony" pages of the Telegraph and/or Guardian?

atush

gadgetmind wrote: »

Dunno, but it's always proved close to impossible to get a regulator to do anything they don't want to do. Maybe you need to complain to the regulator in writing and copy the "financial agony" pages of the Telegraph and/or Guardian?

I agree that this would be the best action to take, but if you are not a member it can't be you doing it- has to an employee who is a member now.

Velcro_Hotdog

Come the 19th of this month my GPP is 6 months in arrears, I spoke to the provider who informed me that each missed payment has been reported to the regulator. I asked if they were interested and the responce was that the regulator will not get involved until the company are so far behind with payments that they wouldn't be able to pay them back! They would then consider taking action

Can't be right.....can it?

atush

Doesn't sound right to me. Sounds like the regualtors aren't doing their job, or this robbing peter to pay paul has been going on a lot more than we think?

buel

Hi- just an update, i have sent a recorded delivery letter on behalf of my friend to the Pensions regulator with proof of my friend's employer delaying/not making the contributions they took from him, asking them if they wont intervene after 3 missing payments then at what threshold will they intervene.
Should be an interesting reply?

buel

Hi again. Here is the update that was requested:
The regulator replied saying how they would not take any action against my employer for two reasons: Firstly that Scottish Widows have said there were no problems with the lateness of contributions.
So when i provided proof of the late contributions (statements from SW), their second reason was that they judge each case on a risk-basis assessment and that my employer's constant late contributions were not seen as a risk.

Scottish Widows have really been giving me the runaround by constantly refusing to answer my specific question of why they wont report my employer to the Ombudsman even though they were late in paying the contributions for 9 consecutive months (all over the 19 day deadline).
Finally yesterday they replied with a very evasive and dismissive letter starting with how my friend should disregard any information i have that tells him that the contributions were late and to treat this new set of statements as the definitive list (which showed that, miraculously, all payments were made on time), they then said how 'The vast majority of most pension policies only invest the money when it is received. However, in this case, we have an agreement with your employer to use a set date. We purchase the units and they pay us for them at a later date. As everything gets backdated to when it should be, there really is no concern for you'.

They then go on to say how the customer services operator who told me by phone that the contributions were late nine consecutive months and that he could see that SW had written to the financial advisor for my employer to warn him a number of times, has heen spoken to.

They then said that this was their final response to the matter and how he could go to the ombudsman.

Is it just me or is this 'agreement' extremely odd?

buel

Anyone, please?

jamesd

That seems a little odd, as though the employee is being disciplined for telling you what had been happening with your pension contribution money. Almost as though they were trying to protect the privacy of your employer as if it was their pension rather than yours.

If the investments really have been purchased on time then that eliminates one issue, leaving at least this question: had the employer not paid for the investments that were made, would they have been withdrawn from the pension by Scottish Widows?

Being late 9 consecutive times isn't so much of a problem as being late 9 months for one payment would be. Accumulating a large amount owed is a bigger deal than being routinely slow to pay, particularly if the investments are being made on time.

buel

Thank you for that.
Yes it did feel as if they were 'punishing' my friend.

Regarding the lateness of their payments and whether any were indeed missing, my friend rang them yesterday to find out when the last payment/contribution was made and it was December so that's January and February that are actually missing?

Also, he asked them 'Would the transfer value of my pension be less than it should if the employer has failed to make up to date payments should i choose to transfer my pension?' and the answer he received was 'Yes' so, in effect, he could lose out, should he wish to transfer his pension, due to the employer's late payments.

Is it heard of for any such 'agreements' to be in place between pension provider and employer, such as the one mentioned?

buel

Hello, can anyone help?