Pension overpayment by work

barbielawa

I have currently been made aware by my work that they have been overpaying into my pension pot. As a result they say I now have to pay the money back, which is a few hundred pounds. I am currently on maternity leave and will be paying most of my wage on childcare and mortgage when I go back to work. Apparently there is no way they can cease making additional payments into my pension to cover this, nor can they retrieve money from it. I did not ask to make a contribution of this sum and to pay it off will take me 18months or so. I'm so frustrated with this. Does anyone know where I stand?

Dox

If it was a genuine error the employer can normally 'retrieve' the money. See post 6 of https://forums.moneysavingexpert.com/discussion/4912386/employer-makes-overpayment-to-personal-pension-can-it-be-corrected-equitably

fwor

barbielawa wrote: »

Apparently there is no way they can cease making additional payments into my pension to cover this, nor can they retrieve money from it.

I suspect that they are misleading you when they say this. In all probability what they mean is that it will difficult for them, and it would be much easier if you stump up some cash instead.

But, on the face of it, I don't see how, having made one or more incorrect payments to a third party, they can force you to pay them the money that they paid in error to someone else. If they had overpaid you it would be a different matter, but that's not the case here.

Having said that, you might find that an overpayment into your pension could be to your long-term benefit, and you might also want to avoid annoying the people in your employer's HR dept - and that might affect your decision about whether to make a fuss or just pay up.

Ganga

Can you not explain that you are on maternity leave and on a reduced buget and will pay them back at £x per month when back in full time employment.