Pension contributions withheld

atalosstoo

I am part of a salary sacrifice scheme at work and my contract simply says that for a reduced monthly salary the company will make commensurate pension contributions for me into the company’s pension plan, together with a further company pension contribution. The original application form specified that contributions should be made monthly.
However I have discovered that during the last 21 months the company has been withholding contributions in certain months, with the result that currently 7 months’ worth of contributions have been withheld. The last contribution was in November 2011. I found all this out by accident.
I have spoken to and written to the company and they verbally assured me they intended to start paying this money back on a given date but have failed to do so. Nor have they contacted me to advise me of this.
What can I do?

xylophone

Get a written response from the company as a first step. Consult your union if you have one.
http://www.pensions-ombudsman.org.uk/ may be of interest.
http://www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10027521 might be of interest in respect of breach of contract.

atush

I might take the view that your company is having cash flow problems.

So, I would seriously have a look at the company's health and future prospects and be brushing up my CV and looking?

wallpaperman

atalosstoo wrote: »

However I have discovered that during the last 21 months the company has been withholding contributions in certain months, with the result that currently 7 months’ worth of contributions have been withheld. The last contribution was in November 2011. I found all this out by accident.
I have spoken to and written to the company and they verbally assured me they intended to start paying this money back on a given date but have failed to do so. Nor have they contacted me to advise me of this.
What can I do?

Is it only you affected to your knowledge or all members of the scheme?

If it is all members your pension provider should be reporting this to The Pensions Regulator. The company I work for do this from time to time, when needed. How much the TPR will do often depends on the size of the scheme (I know this is not fair, all schemes should be treated equally), but they have taken interest before in even small schemes and may contact your employer to bend their ear.

I would get onto the Pension company and ask if they have reported them to The Pensions Regulator, and if not, ask them why.