Calculate backdated pension contributions

w00519772

bigadaj wrote: »

There is a loss to you in the money not being invested, if that is the case then the employer should make good that shortfall in your pension fund.

Are you referring to capital appreciation? Therefore if my fund has grown by 3% in the last eighteen months, then they should contribute an additional 3%.

Is it reasonable to ask them to contribute an additional 3% on top of my contributions?

I was talking to the Pensions advisory service and they said they use 8% to calculate interest? They also advised that I may be entitled to a bit of compensation for being deprived of the money.

I do not understand the compensation element. I would not have access to the money as I am only 33 years old. Therefore I think it is unreasonable to ask for compensation. They said that the compensation would be paid into my pension pot.

bigadaj

w00519772 wrote: »

Are you referring to capital appreciation? Therefore if my fund has grown by 3% in the last eighteen months, then they should contribute an additional 3%.

Is it reasonable to ask them to contribute an additional 3% on top of my contributions?

I was talking to the Pensions advisory service and they said they use 8% to calculate interest? They also advised that I may be entitled to a bit of compensation for being deprived of the money.

I do not understand the compensation element. I would not have access to the money as I am only 33 years old. Therefore I think it is unreasonable to ask for compensation. They said that the compensation would be paid into my pension pot.

The 8% isn't relevant to your case. Don't start asking for compensation as that just sounds bad, just say you want to be in the same situation as if they'd paid on time.

If it can be shown that this is your company's fault, which appears likely based on your statements, then you need to be out back into the position you would have been if the company had not failed to pay the money in.

There is no compensation, there should just be a contribution to put your pension pot at the same level if the payments had been made at the correct time. Of course if funds had fallen then this might mean they would pay less, but in that case you'd tend to get the actual value of contributions as the company has had the benefit of the money they've not paid for the last eighteen months.

w00519772

I have absolutely no intention of asking for compensation as it sounds ridiculous to me.

If my pot increased by 3% then will I be expected to pay 3% on top of my contributions? Surely this would mean that I am not in the same position as I would of been in.

hyubh

w00519772 wrote: »

I have absolutely no intention of asking for compensation as it sounds ridiculous to me.

If my pot increased by 3% then will I be expected to pay 3% on top of my contributions?

No, the employer makes the difference. As you say, this wouldn't be 'compensation', though there's a risk of getting bogged down in semantics (an HR person might intuitively think of it as 'compensation', for example).