AVCs deducted but not paid

knarl85

A work colleague of mine has discovered that the AVC contributions that have been deducted from their pay for the last two years have not been paid across to our pension provider.

This seems completely unacceptable to me but wanted to check on here if this is a common occurrence.  It seems like a poor failing on our employer's part.

What can / should be done from here?  Should they push to be compensated for potential loss of gains in that time?

dunstonh

This seems completely unacceptable to me but wanted to check on here if this is a common occurrence.

It is not common but it happens enough for the occasional person to mention it.

What can / should be done from here? 

Speak to the department that deals with payroll.   

Should they push to be compensated for potential loss of gains in that time?

Markets are down and back to 2020 prices.  So, getting a lump sum paid in now to make up the shortfall may actually give them a better outcome than had it been paid on drip.

Albermarle

What can / should be done from here?  Should they push to be compensated for potential loss of gains in that time?

If it was the pension provider fault you could probably push them for a couple of hundred quid compensation and maybe some compensation for investment loss, although as Dunstonh has pointed out there might not actually be any.

However pestering your own employer for compensation is a different issue. They would have to be careful, it did not have any potentially negative effects on their standing at work.

Also no doubt someone will question why it took your colleague two years to notice. Whether that's fair or not.