Pension backdated

w00519773

I received a letter from my employer of 11 years last month saying that since April 2015; new employees on my grade would receive a 8% pension (I receive a 5% pension - since 2015) in employer contribution.  Employer decided to backdate the 3% (8%-5%) missing payments since April 2015.  I did not ask for this - I received a random letter.
I handed in my resignation in 2014 and 2016 and my employer fought to persuade me to stay in both cases (not sure this is relevant!).
Should I just thank my employer and move on or take issue that I could of left and missed out on the additional employer contributions?
I ask because there were issues with my pension in the past and my employer paid approximately £15K in missing contributions one month after months of discussion.  Over many months I showed that mathematically the employer calculations were wrong and it was finally acknowledged,

tasticz

I am also interested in this. I wonder if the employer has to pay interest on these missed payments?

Hopefully someone can advice.

68ComebackSpecial

w00519773 said:

I received a letter from my employer of 11 years last month saying that since April 2015; new employees on my grade would receive a 8% pension (I receive a 5% pension - since 2015) in employer contribution.  Employer decided to backdate the 3% (8%-5%) missing payments since April 2015.  I did not ask for this - I received a random letter.
I handed in my resignation in 2014 and 2016 and my employer fought to persuade me to stay in both cases (not sure this is relevant!).
Should I just thank my employer and move on or take issue that I could of left and missed out on the additional employer contributions?
I ask because there were issues with my pension in the past and my employer paid approximately £15K in missing contributions one month after months of discussion.  Over many months I showed that mathematically the employer calculations were wrong and it was finally acknowledged,

What you should be taking issue with is the fact that the pension fund will almost certainly have grown over six years so the amount they are paying in retrospectively should include an additional amount to bring your fund value up to the same sum it would have reached had the funds been paid in correctly. I doubt that this will be an easy calculation.

AskAsk

68ComebackSpecial said:

w00519773 said:

I received a letter from my employer of 11 years last month saying that since April 2015; new employees on my grade would receive a 8% pension (I receive a 5% pension - since 2015) in employer contribution.  Employer decided to backdate the 3% (8%-5%) missing payments since April 2015.  I did not ask for this - I received a random letter.
I handed in my resignation in 2014 and 2016 and my employer fought to persuade me to stay in both cases (not sure this is relevant!).
Should I just thank my employer and move on or take issue that I could of left and missed out on the additional employer contributions?
I ask because there were issues with my pension in the past and my employer paid approximately £15K in missing contributions one month after months of discussion.  Over many months I showed that mathematically the employer calculations were wrong and it was finally acknowledged,

What you should be taking issue with is the fact that the pension fund will almost certainly have grown over six years so the amount they are paying in retrospectively should include an additional amount to bring your fund value up to the same sum it would have reached had the funds been paid in correctly. I doubt that this will be an easy calculation.

it is not necessarily a growing fund as it could have gone down as well as up.  depending on what the funds were invested in.  the correct way would be to pretend to put the contributions into the fund when they were supposed to have been credited and buy units in that fund, so you get the units credited to your account.  depending on the fund and investment choices, this can be an easy enough calculation and there are software that do this for pension scheme funds.

Marcon

w00519773 said:

Should I just thank my employer and move on or take issue that I could of left and missed out on the additional employer contributions?
I ask because there were issues with my pension in the past and my employer paid approximately £15K in missing contributions one month after months of discussion.  Over many months I showed that mathematically the employer calculations were wrong and it was finally acknowledged,

Were these contributions to which you were contractually entitled? If not, there's nothing to take issue with.

If you were contractually entitled, taking issue because you might have left and missed out on them is plain silly; you didn't. What you do need to take issue with is their late payment (if a contractual entitlement) - ditto the missing £15K. The pension provider needs to be asked to provide details of what your fund would be worth today had all contributions been received at the correct time. You then get the better of your current fund value, or what it would have been had contributions been paid when they should.

Thrugelmir

What's your actual question?  One assumes that your pension pot is going to be topped up by the additional contributions. There's no need for you to do anything. 

AskAsk

Thrugelmir said:

What's your actual question?  One assumes that your pension pot is going to be topped up by the additional contributions. There's no need for you to do anything. 

he wants to know if he should make a complaint that he could have left if they had accepted his resignation and so would have not benefited from this correction.  complete nonsense of course.  i might as well make a complaint that i was not born into royalty and now have to work for a living, so very unfair!