Pension contributions deducted from salary but not entered into scheme

doorknob

My company have been deducting pension contributions from my salary for several years. I thought the contributions were added to my company contributions but the pension provider says that this should be 2 separate pensions however I only receive 1 statement every year for the company contributions. What do I do about the contributions I've made? The company have not being paid them into a pension for me. Can I claim this money back from the company along with interest?

GhIFA

Does the scheme operate on a Salary Sacrifice basis? If this is the case then the contributions will show as Employer Contributions.

atush

And if the employer did forget to put int he money, dont' ask for it back. Ask for it to go into the pension.

doorknob

No, not that I'm aware. The company contributes a percentage of my salary to a pension and this percentage corresponds with the statement every year. No-where does it state the amount that I personally contribute.
Thanks for replying.

doorknob

atush wrote: »

And if the employer did forget to put int he money, dont' ask for it back. Ask for it to go into the pension.

Don't want to sound stupid but surely your pension is put into some sort of scheme and gains interest so what's the benefit of putting into a scheme now?

Lokolo

doorknob wrote: »

Don't want to sound stupid but surely your pension is put into some sort of scheme and gains interest so what's the benefit of putting into a scheme now?

For future gains.

bilbo51

doorknob wrote: »

Don't want to sound stupid but surely your pension is put into some sort of scheme and gains interest so what's the benefit of putting into a scheme now?

If there is cash which should be going into the scheme and this has been happening over several years, then your employer and the pension scheme company must put you into a position equal to the situation you would have been in had they been making the contributions properly. ie they should backdate the transactions to the dates they should have been made, and any gains (or losses!) that should have been made can be applied.

McKneff

If indeed you were able to claim it back you would pay tax and NI on it and all your company contributions would come back out of the pension too.

That would be just plain daft.

atush

doorknob wrote: »

Don't want to sound stupid but surely your pension is put into some sort of scheme and gains interest so what's the benefit of putting into a scheme now?

The benefit is the tax relief and the time to make investment gains. And yes you should ask to be put in the position you should have been if you had invested on time and this could mean extra added.

As said, if you asked for the money back you might lose any matching employers contribs, and you would certainly have to pay tax and NI on the money, and you would have a lower pension pot which is no good for your future.

xylophone

2 separate pensions however I only receive 1 statement every year for the company contributions. What do I do about the contributions I've made? The company have not being paid them into a pension for me.

So where is the money now?

fergual2

doorknob wrote: »

My company have been deducting pension contributions from my salary for several years. I thought the contributions were added to my company contributions but the pension provider says that this should be 2 separate pensions however I only receive 1 statement every year for the company contributions. What do I do about the contributions I've made? The company have not being paid them into a pension for me. Can I claim this money back from the company along with interest?

I would check with your Company Pension Trustees first. I would be suprised if you had two pension statements - one based on your contribution and another from your employers. Usually they are all clubbed together.

If indeed your contributions have not been paid into the scheme as you claim - then get the pension provider to provide exact amounts which should have been paid in and the profit/loss each of those contributions would be showing if invested properly. Depending on this outcome if the amount is at a loss to your contributions to date then ask them to feed a lump sum in now or even better spread over next 12 months into scheme to even out market fluctuations. If overall the contributions are showing a profit - then they should make the shortfall up and bring your pension pot in line with the profit it has shown.
Good luck