Added Years missing and miscalculated - Civil Service Pension Classic scheme

Uncivilservant

Hi everyone,

I've been happily purchasing Added Years on my CS Classic scheme pretty much since I joined in 1998 (Added Years arrangement was put in place in 2000). Given my age at the time, I was able to purchase the maximum available to me: 7 years. I've kept all the confirmation documentation (hard copy letters in those days!) that confirms the arrangement would start in early 2000 and continue until I retire, or cancel or whatever. I've had no breaks in service, no illness or maternity leave. I went from full time to a 4 day working week in 2021.

In January this year, our payroll folk contacted me to say that:

1. They'd failed to adjust when I went part time, meaning they've not been deducting enough since 2021.
2. They'd failed to make ANY deductions in 1999-2000; 2000-2001; or (weirdly) 2003-2004.

All this has left me facing a repayment (should I want the full amount of Added Years I believed I was purchasing) of just over £3.5k. They're offering a repayment plan, but still.

Annoyingly I don't have payslips that far back and am having to 'trust' HR/pension provider's word on all this, including the amounts.

I feel there's a principle at play here and I shouldn't be expected to face this financial detriment which is no fault of my own (either repayment or 'losing' some of my Added Years).

I'm at the early stages of deciding what to do (formal complaint; Pensions Ombudsman etc), but just wondered if anyone had any experience of this/advice/thoughts or experience of whether pushing back could be successful. I might be agreeable to being met half way or something if they'd make that gesture, but don't even know if that would be a go-er.

Thoughts welcome!

Thank you.

sammyjammy

The fact you can't evidence you paid for the added years they say are missing isn't helpful, if they are correct and you didn't pay for those periods then you aren't facing any financial detriment, you either pay the sum asked or you accept you've not got added years for that period of time. They are not going to meet you halfway with tax payers money.

Isthisforreal99

There is 'fault of your own' here. You had at least 2 chances to spot any errors 1) By checking your payslips for the correct deductions and 2) checking your annual benefit statements to see what you had accrued.

You haven't lost anything if you haven't paid for it and, as above, tbe taxpayer isn't going to foot half of what you haven't paid.

hugheskevi

I feel there's a principle at play here and I shouldn't be expected to face this financial detriment which is no fault of my own (either repayment or 'losing' some of my Added Years).

If you had kept payslips or P60s then it would be straightforward to confirm. It is prudent to keep copies of all payslips. P60s, and Annual Benefit Statements from date of joining in case of future discrepancies such as this. If what payroll are claiming is true, there would have been no deductions on payslips from 2000-04 that you should have noticed and challenged at the time to avoid this future outcome. Hence, it may be a little premature to claim this is of no fault of your own (although that will be the line you take with payroll).

Having said that, HR/payroll should be providing you with evidence of the lack of payment - after all this time, the default position should be that the Added Pension was purchased and paid for. Any variation to that will require evidence, and you should be able to see that evidence.

Presumably the post 2021 underpayment is not in dispute. You appear to genuinely not know whether the contributions were deducted or not between 2000-2004, and given the default position would be that they were, it is reasonable for you to request evidence to confirm the position from HR so that you are able to determine the position for yourself.

Once the status of the contributions is certain, you can decide whether to make good the payments or not. You should confirm no interest is payable, and that tax relief will be applied to the contributions when they are made (assuming the £3.5K figure is the gross contribution amount due).

I'm at the early stages of deciding what to do (formal complaint; Pensions Ombudsman etc), but just wondered if anyone had any experience of this/advice/thoughts or experience of whether pushing back could be successful. I might be agreeable to being met half way or something if they'd make that gesture, but don't even know if that would be a go-er.

A complaint would just confirm the position. You might get something like £250 compensation for poor administration. Taking it through Internal Dispute Resolution stage 1, stage 2, and then to Pension Ombudsman would take years to conclude given the current backlogs. It really isn't worth the time of everyone involved.

This is not something that can be negotiated. There was an option available and an associated cost and that is set out in statute. Assuming HR's claim about lack of payment is correct, then either the correct monies due under statute must be paid, or the Added Pension purchase associated with the missing payment voided as the requirements for the purchase were not met.

You could argue that payroll should give you some sort of payment to make up for their past errors, but that would a separate payment to the cost of Added Years.

horsewithnoname

certainly the default position is that it is up to you to notice and get the position rectified. If you know that you would have done this, then you could take the tack that you were paying because otherwise you would have done something.
maybe a subject access request to get all the details the pension company and your employer have?