Employer Underpaid Contributions

Exodi

MallyGirl said:

Lelbel76 said:

MallyGirl said:

if you are up for some spreadsheeting, you could calculate what the missing growth would be worth by looking at your statement and modelling the extra going in using the same dates as you actual contribution and

I did take each monthly missing contribution amount and used a compound interest rate over the number of months it had been 'missing' but wasn't sure if that was the right way to go about it.

if you want to get some redress from them it will be easier if you provide solid figures. Your pension is likely invested so the concept of interest doesn't exist.
As stated above - you need to look at how many investment units the missing extra contribution would have bought each time and add them up. Compare that with how many units the lump sum bought and ask for the value of what is needed to make up the difference

Agree with MallyGirl, I don't think it's appropriate (or likely to be taken seriously) if you just whip up numbers out of thin air with your own guesstimates at an appropriate 'interest rate'.

I'd provide a sheet showing how many units you could have bought at each price over the period, and then what these units would be worth now.

E.g. let's say you were calculating a shortfall of £100 for a payment made on the 1st of the month every month this year, in my made up fund.

01/01/24: £100 = 100 units @100.00 GBX
01/02/24: £100 = 99 units   @101.01 GBX
01/03/24: £100 = 95 units   @105.26 GBX
01/04/24: £100 = 105 units @95.24   GBX
01/05/24: £100 = 102 units @98.04   GBX
01/06/24: £100 = 95 units   @105.26 GBX
01/07/24: £100 = 94 units   @106.38 GBX

Total units purchased = 690 units.
Current price is 107.50GBX, so these investments would now be worth £741.75.

You'd then argue that while they have reimbursed you £700 (in the above example) this does not include the £41.75 in growth you would have received if you had invested it normally without their mistake.

Lelbel76

Exodi said:

MallyGirl said:

Lelbel76 said:

MallyGirl said:

if you are up for some spreadsheeting, you could calculate what the missing growth would be worth by looking at your statement and modelling the extra going in using the same dates as you actual contribution and

I did take each monthly missing contribution amount and used a compound interest rate over the number of months it had been 'missing' but wasn't sure if that was the right way to go about it.

if you want to get some redress from them it will be easier if you provide solid figures. Your pension is likely invested so the concept of interest doesn't exist.
As stated above - you need to look at how many investment units the missing extra contribution would have bought each time and add them up. Compare that with how many units the lump sum bought and ask for the value of what is needed to make up the difference

Agree with MallyGirl, I don't think it's appropriate (or likely to be taken seriously) if you just whip up numbers out of thin air with your own guesstimates at an appropriate 'interest rate'.

I'd provide a sheet showing how many units you could have bought at each price over the period, and then what these units would be worth now.

E.g. let's say you were calculating a shortfall of £100 for a payment made on the 1st of the month every month this year, in my made up fund.

01/01/24: £100 = 100 units @100.00 GBX
01/02/24: £100 = 99 units   @101.01 GBX
01/03/24: £100 = 95 units   @105.26 GBX
01/04/24: £100 = 105 units @95.24   GBX
01/05/24: £100 = 102 units @98.04   GBX
01/06/24: £100 = 95 units   @105.26 GBX
01/07/24: £100 = 94 units   @106.38 GBX

Total units purchased = 690 units.
Current price is 107.50GBX, so these investments would now be worth £741.75.

You'd then argue that while they have reimbursed you £700 (in the above example) this does not include the £41.75 in growth you would have received if you had invested it normally without their mistake.

Thanks Exodi, that makes sense. I'll try and fin the fund prices through Aviva. 

Exodi

Lelbel76 said:

Exodi said:

MallyGirl said:

Lelbel76 said:

MallyGirl said:

if you are up for some spreadsheeting, you could calculate what the missing growth would be worth by looking at your statement and modelling the extra going in using the same dates as you actual contribution and

I did take each monthly missing contribution amount and used a compound interest rate over the number of months it had been 'missing' but wasn't sure if that was the right way to go about it.

if you want to get some redress from them it will be easier if you provide solid figures. Your pension is likely invested so the concept of interest doesn't exist.
As stated above - you need to look at how many investment units the missing extra contribution would have bought each time and add them up. Compare that with how many units the lump sum bought and ask for the value of what is needed to make up the difference

Agree with MallyGirl, I don't think it's appropriate (or likely to be taken seriously) if you just whip up numbers out of thin air with your own guesstimates at an appropriate 'interest rate'.

I'd provide a sheet showing how many units you could have bought at each price over the period, and then what these units would be worth now.

E.g. let's say you were calculating a shortfall of £100 for a payment made on the 1st of the month every month this year, in my made up fund.

01/01/24: £100 = 100 units @100.00 GBX
01/02/24: £100 = 99 units   @101.01 GBX
01/03/24: £100 = 95 units   @105.26 GBX
01/04/24: £100 = 105 units @95.24   GBX
01/05/24: £100 = 102 units @98.04   GBX
01/06/24: £100 = 95 units   @105.26 GBX
01/07/24: £100 = 94 units   @106.38 GBX

Total units purchased = 690 units.
Current price is 107.50GBX, so these investments would now be worth £741.75.

You'd then argue that while they have reimbursed you £700 (in the above example) this does not include the £41.75 in growth you would have received if you had invested it normally without their mistake.

Thanks Exodi, that makes sense. I'll try and fin the fund prices through Aviva. 

As Mally said earlier, if contributions were being made (albeit lower value than they should have been) then it's very easy to go back through your transaction history and find out the fund prices you bought at every month.