Pension Shortfall

green.lander_2

Hello,

Last year i took receipt of my DB pension all looked okay until the end of the year when i worked out that over 12 payments there was a significant shortfall in agreed payment. This is estimated to be around £3k. Now you may ask why i did not spot this but i have had a horrible 12 months due to death in family and my wife battling cancel so it was not on my mind to check. The pension company has admitted a "human error" and is committed to repayment but this is after numerous phone calls and emails. Would you expect some sort compensation of loss of interest from loss of money?

Thank you

badmemory

You may also have a tax problem as that £3k has been moved to a future year that will already be £3k higher than last year. For example income last year £10k no tax due. Income this tax year £13k + £3k from last year - taxable income £16000-12570. Taxable = £3430 not £430 as it should be. It probably won't make a difference but must be considered just in case.

xylophone

You may also have a tax problem

BUT SEE https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim75020

hyubh

https://forums.moneysavingexpert.com/discussion/6664350/pension-shortfall

Short answer - yes to interest, maybe to 'compensation', though you may need to 'haggle'/argue the tee oh double ess. If you haven't already, raise a formal complaint under the scheme's internal dispute resolution procedure (IDRP). Unfortunately there isn't any specific redress mandated under covering pensions legislation, though a common one is 1% above the BoE base rate in some form. E.g. in the LGPS, scheme regulations stipulate interest for late payments for whatever reason to be that, compounded with three monthly rests. In contrast, the 'Lloyds Judgement' for GMPe Equalisation arrears gave 1% above the BoE base rate using simple not compounded.

Somebody

Agree on interest. One of my DBs had a GMP adjustment in my favour and on top of the back pay they also calculated and paid interest on the late/catchup payment, which wasn't subject to PAYE.