Being refused pension contribution refund

mrs*mosschops

I started working for the local council in April and after my first wage I noticed that they had put me down as paying into the pension fund. I rang them and was told that because I was only working for an hour and half a day tempory that I didn't want to pay into it. The lady I spoke to sent me out a form to opt out which I sent back the same day. They didn't opt me out so I have been paying into since April.

I know its my own fault for not checking my payslips each month but I just took it for granted that it would be right.

I phoned the wages and pension department today and was told because I had been paying into it for over 3 months then I would have to wait till I retire to get the money. This is 40 years away yet and its a long time to wait for just £32. I challenged them and told them that I did send the form back and not only that discussed it with the lady on phone back in April that there was no point in me paying into a pension for just a short time and she agreed.

Now the bit I that is going over and over in my head is that the first lady I spoke to today said that they had received my form but the lady who dealt with hadn't done it properly. I would of thought that if it was a mistake on they're behalf then they should refund. I was told they would ring me back after they had spoken to the lady concerned.

They rang me back and said they hadn't received and therefore will not get any money back.

LittleVoice

As your work is not going to be ongoing (you mentioned it was temporary) and the actual amount is presumably small (though irritating and you would think better in your pocket than locked up for 40 years), I think you will have to accept the position you are in. That is unless you really want to pursue a complaint of maladministration.

You have my sympathies - I wasn't told about the pension scheme until I noticed the deduction on my first payslip too. I think those who interviewed me thought I would be self-employed whereas, at the time, I wanted to be employed as I was trying to move all my income away from self-employment. I wasn't even allowed the option of withdrawing at that point. (This was obviously wrong information on the part of the pension staff.) I could now collect my pension but have decided to defer it for five years. As I was employed for only a few hours a month for three months, my pension from this employment will be about £5/year.

You on the other hand have 40 years during which time you may do more and more highly paid work for an organisation which uses the same scheme or will allow transfers in from it. It may therefore eventually be to your advantage.

By the way, when you do get to the point of retirement, I think you may find you can't get all of your contributions as a lump sum, you can take part as a tax-free lump sum and the rest is the pot for your pension. That's the rule at the moment but who knows what it will be like in 40 years time.

mrs*mosschops

Hi Littlevoice

to be honest puruing a complaint is probably gping to be a lot of hassle and I cant be bothered with hassle at the mom lol, 2 kids are enough.

It was just the thought of having to wait 40 years for a daft amount of £32, its bad enough waiting till April for my £30 tax overpayment lol.

Your right I could end up with a company who uses the same and I should leave it. I am hoping to back in full time work within the next 2 years. I hae to wait for my youngest to be in ful time school first.

thanks

peterbaker

I am not an expert but what you have been told at work sounds like complete and utter tosh to me propounded by idiots who don't give two hoots.

I have got seven or eight splintered bits of pensions all over the place so I am more aware than most of the total uselessness of small amounts locked up in insurance company funds being bled dry by unscrupulous fund managers.

There also used to be law that permitted any membership of a company pension scheme of less than 2 years (? or perhaps it was just one) to be cashed in on leaving the scheme. I did that in 1989 with one I'd paid into for just 10 months.

Perhaps one of the experts will be along shortly to confirm the ridiculousness of the council pension department's bull"%*7!

There is no way anyone is going to be looking after your £32. It'll probably just get kicked around, sapped by charges and ultimately forgotten / unclaimed, and end up paying someone else's pension (probably someone like the idiots who sit there spouting rubbish to temporary staff like yourself) if the current government's latest ideas for dealing with 'shortfalls' come to fruition.

It is not your fault at all. They made the mistake and they need a good kick in the pants.

jem16

peterbaker wrote: »

There also used to be law that permitted any membership of a company pension scheme of less than 2 years (? or perhaps it was just one) to be cashed in on leaving the scheme. I did that in 1989 with one I'd paid into for just 10 months.

It's only 3 months in the local government scheme unless the OP is in Scotland in which case it is 2 years;

http://www.lgps.org.uk/contributing/refund.html

However I do agree that it's the council's mistake and they should fix it. However is it worth your time as you will get less back than you paid in due to tax and NI.

However if it was me I would go for it out of principle.

mrs*mosschops

thanks for the replies, your nearly persuading me to go for it. I hate to think of someone else having my money or it just disappearing in to thin air. I also don't think that £32 is going to be any use when I retire.

I cant do anything till Monday so will have a think on how to go about it.

thanks again

Andy_L

peterbaker wrote: »

I am not an expert but what you have been told at work sounds like complete and utter tosh to me propounded by idiots who don't give two hoots.

I have got seven or eight splintered bits of pensions all over the place so I am more aware than most of the total uselessness of small amounts locked up in insurance company funds being bled dry by unscrupulous fund managers.

Perhaps one of the experts will be along shortly to confirm the ridiculousness of the council pension department's bull"%*7!

Somebody in payroll may (or may not) have cocked up but the LGPS is a taxpayer backed, guaranteed scheme. It won't disappear in charges & has employer contributions worth about 3-4 times the value of the employees contributions. For the effort involved I'd leave it there, especially as,IIRC, if you stay working for the council you can never rejoin the pension scheme once you leave.

mrs*mosschops

Hi Andy

I have already posted my opt out form. I only get £125 a month then they take off £7.62 for the pension. After replacing the tax credits I lost for taking the job I am only left with about £70 a month. £7 is a huge sum of money I know but at the moment we need every penny we can get. My TC dropped down to £39 a month for taking this job but after having 5 years brining up my two kids I needed to do something for me.

I shall leave it till Monday to have another think, its Saturday and I think thinking should be left till the working week lol.

LittleVoice

mrs*mosschops wrote: »

Hi Littlevoice

It was just the thought of having to wait 40 years for a daft amount of £32, its bad enough waiting till April for my £30 tax overpayment lol.

At least you can be sure of getting your pension at that time.

I was tracked down through the DWP to receive a pension from a public sector scheme where I thought all entitlement had been taken out (refund of all contributions) when I got married 34 years ago. I left my employer on the last day of its official existence but it seems the group of similar organisations had some obligation because of graduated pension contributions. I have been able to take a single (partly taxable) payment now so that I don't have to bother with the tiny (another £5/year) pension in the future.