Pension Contributions not paid

[Captain Fantastic]

Hello all (first time poster),

 

Please could someone offer any advice or similar experience?

 

Towards the tail-end of 2012, I accepted the offer of a position with a certain organisation with a 6 month probationary period.

 

Part of the package was that the employer would pay an extra 10% on top of my salary into a non-contributory pension scheme.

 

Once there, I discovered that my line manager had taken a dislike to my predecessor who lasted under two weeks before resigning as a result.

 

Unfortunately, it soon became clear that the same line manager had also taken a disliking to myself and made it equally clear that I would not last through the probationary period.

 

I actually lasted the best part of 5 months before resigning as the line manager was making my life ever more intolerable and was also dropping hints that, should I not leave, I would be fired at my six month review and would also suffer from not receiving a decent reference.

 

I noted that the promised pension contributions were not being paid into the pension plan that had been setup and found that the payments were being actively "delayed" by my line-manager. The payments were due to have been made "from day one" and I unearthed that my predecessor's pension plan payments had been similarly delayed by the same manager.

 

The amount which should have been paid into the plan (but wasn't) amounts to nearly £600 and I wondered who that unpaid sum belongs to?

 

It's not in the fund, so has been kept by the employer. I have since raised this, along with other complaints regarding my treatment and reason for resigning - just prior to my 6 month review - with the organisation but they have said they find no evidence of wrongdoing on the part of the manager (and to, effectively, "sling-yer-hook"). No comment, in their reply to my complaint, was forthcoming with regard to my query regarding the pension contributions that should have been made.

 

I have no idea who that cash belongs to - but could sorely use it as I am since unemployed.

 

Can someone offer a definitive answer or any other advice, please?

[Emmzzi]

have you raised a written grievance using the words "this is a grievance"?

 

If not, do that

 

If so, ET1

 

Usually you get a refund for contributions on length of service under 2 years (depends on pension scheme) so I would expect the cash is yours BUT you may be a while getting it

[Captain Fantastic]

have you raised a written grievance using the words "this is a grievance"?

 

If not, do that

 

If so, ET1

 

Usually you get a refund for contributions on length of service under 2 years (depends on pension scheme) so I would expect the cash is yours BUT you may be a while getting it

 

Wow!!! That was a quick reply. Thank you so much.

 

I submitted a written complaint (I also attended at an "Internal Investigation" to answer questions from the investigator) but did not use the phrase "This is a grievance". Is that important? How so?

 

Also, what does ET1 mean (excuse my ignorance and thanks for your advice).

[Emmzzi]

ET1 = form to start an employment tribunal. if you have a contract that includes the penions beneit ti should be quite straightforward.

 

the letter is to establish an audit trail showing you have exhausted internal procedures, altho you can put in a grievance and an ET1 at the same time and withdraw the Et should it be settled.

 

You need to submit the ET1 within 3 months less a day of finishing up. Do NOT get stalled with promises of payment; only withdraw when the cheque clears!

[Captain Fantastic]

Thank you very much. I quit on January 10th so am really pleased I came here, today, whilst there is still time.

 

Your help is really appreciated, Emmzzi.

[Emmzzi]

np. other people on the board have more experience of the ET process so hopefully they will be along to help too soon. Lots of self representers here!

[Emmzzi]

ps start here

 

https://www.gov.uk/employment-tribunals/taking-a-case-to-an-employment-tribunal

[Captain Fantastic]

Cool. All advice is gratefully received (it's quite lonely....being on your own.....in these situations).

 

Thanks again for daring to be caring.

 

[ericsbrother]

As the pension contributions are part of your pay, albeit deferred pay, then the non-payment of these contributions is an unlawful deduction of pay and a breach of your terms and conditions. Although the mpney is kept in a pension scheme, it is transferrable to another suitable scheme so it is worth fighting for. Find out who the pension trustees are and contact them to ask why the employer hasnt paid nto the scheme.Your employer may have "inadvertently" not paid the correct tax and NI contributions on your behalf because of this.

[Captain Fantastic]

As the pension contributions are part of your pay, albeit deferred pay, then the non-payment of these contributions is an unlawful deduction of pay and a breach of your terms and conditions. Although the mpney is kept in a pension scheme, it is transferrable to another suitable scheme so it is worth fighting for. Find out who the pension trustees are and contact them to ask why the employer hasnt paid nto the scheme.Your employer may have "inadvertently" not paid the correct tax and NI contributions on your behalf because of this.

 

Thanks for the reply.

 

As the contributions were never paid in, should I put in a formal request to my ex-employer that they simply pay me the sums that should have been paid into the plan, do you think?

 

Incidentally, I already have evidence that my line manager contacted the pension provider and told them to "put the Direct Debit on hold" (as the same manager had also done with the payments of my predecessor's DD who was also similarly "persuaded" to leave, by the same manager).

 

Weird thing is that I put the pension situation in writing and also told the "internal investigation" officer of this and yet, following that investigation, the management not only rejected my claim to having been unfairly forced out of the job but also made no reference to the pension plan. I suspect it is because they are not the sharpest chisels in the bag but - given that it was part of my written contract and can be confirmed by the pension provider - could they still seek to deny me the cash, do you think?

 

Sorry for so many questions:???:

[honeybee13]

Hello there.

 

As Emmzzi said earlier, it could be that the contributions would just be refunded to you on leaving [less a bit of tax from memory], although this might depend on what type of pension scheme it is.

 

I agree with the guys, I think it's worth arguing about.

 

HB

[Captain Fantastic]

I have a sneaky (wholly unfounded and almost guaranteed to be wrong) suspicion that, since raising this lack of contractual pension contribution issue as part of my complaint, my employer may have (since my complaint) arranged for backdated contributions to have been made into the plan.

 

If that were to be the case, should I seek to claim from the pension provider or the former employer and leave it for them to claw back from the pension fund?

[Emmzzi]

I know the answer! But it's secret.

[Captain Fantastic]

Thanks. Maybe someone else will reveal it.

 

Showing your spots, Emmzzi.

 

Have another beer, mate and (in the meantime) consider getting a life.

 

You're threatening to bring this forum into disrepute as I thought it was supposed to help - not hinder.

[honeybee13]

I have a sneaky (wholly unfounded and almost guaranteed to be wrong) suspicion that, since raising this lack of contractual pension contribution issue as part of my complaint, my employer may have (since my complaint) arranged for backdated contributions to have been made into the plan.

 

If that were to be the case, should I seek to claim from the pension provider or the former employer and leave it for them to claw back from the pension fund?

 

Hello there. I think the answer may depend on what type of pension fund you're talking about. Can you tell us please?

 

My best, HB

[Captain Fantastic]

Hello there. I think the answer may depend on what type of pension fund you're talking about. Can you tell us please?

 

My best, HB

 

Hi HB (I didn't even know there were different types so please excuse my ignorance).

 

I have a copy of my application which states it's an Aviva Executive Pension Plan (no-one ever told me I was an executive, I thought I was a lacky - LOL).

[honeybee13]

Hello again.

 

Executive Pension Plan is just one type of pension that's available. Do you have a scheme booklet or details about the scheme that tells you what happens to your/the company's contributions if you leave please? Assuming they've been paid in.

 

And if you do, what does it say about leaving in the first year or two of being in the scheme?

 

HB

[Captain Fantastic]

Hello again.

 

Executive Pension Plan is just one type of pension that's available. Do you have a scheme booklet or details about the scheme that tells you what happens to your/the company's contributions if you leave please? Assuming they've been paid in.

 

And if you do, what does it say about leaving in the first year or two of being in the scheme?

 

HB

 

I have a "Key Features" booklet which (unfortunately) states MY "first Commitment" as being "To make monthly or yearly contributions until your [my] pension age".

 

Does that mean that (assuming my former employer HAS since paid in, which I doubt but have to consider) I must wait until I retire at age 65, do you think?

[honeybee13]

Right. Key Features Docs aren't always informative, I agree. I think need you should speak to Aviva.

 

Also, who is the Trustee of the scheme please?

 

HB

[Captain Fantastic]

I'm not sure. I think the trustees are my employers (but I don't really understand your question - I'll need to go through the documents to be sure).

 

Thanks for your perseverance with me.

[honeybee13]

I'm not sure. I think the trustees are my employers (but I don't really understand your question - I'll need to go through the documents to be sure).

 

Thanks for your perseverance with me.

 

Yes, I think that is where your answer lies.

 

An EPP [Executive Pension Plan] will have been set up under Trust and therefore will have a Trustee or maybe more than one.

 

Refunds of contributions or what happens to contributions if someone leaves will be covered under the policy terms, which Aviva should know about if you don't have a copy.

 

HB

[Captain Fantastic]

Thanks HB (so blinkin' complicated isn't it). Not to worry, it's only £600 or thereabouts. Could use it but (hopefully) won't die through lack of it.

[steampowered]

I have a sneaky (wholly unfounded and almost guaranteed to be wrong) suspicion that, since raising this lack of contractual pension contribution issue as part of my complaint, my employer may have (since my complaint) arranged for backdated contributions to have been made into the plan.

 

If that were to be the case, should I seek to claim from the pension provider or the former employer and leave it for them to claw back from the pension fund?

 

The employer's obligation was to pay money into the pension fund. If it has now done there is no real reason for the contributions to be refunded. I don't know for sure but I guess it would be illegal given the tax relief surrounding pensions - you are not allowed to withdraw cash until you are of pensionable age.

 

Keep your pension documents. When you join a new employer, arrange for your existing pension fund to be transferred into their fund so that you don't lose track of the money in 30 years time.

Edited March 24, 2013 by steampowered

[Captain Fantastic]

 

Refunds of contributions or what happens to contributions if someone leaves will be covered under the policy terms, which Aviva should know about if you don't have a copy.

 

HB

 

Hi again,

 

I have trawled through all the TAC's of the policy and have found a section that states:

 

"WHAT HAPPENS IF I LEAVE MY JOB?

 

1) You must stop contributing to your plan.

2) You will normally be able to take a refund of the value of the fund that relates to your own contribution, less tax. The value of the fund may be less than the contributions paid.

 

As per item #1 - The plan was due to commence at start of September but this had not been signed-off by my manager (for the fund's Trustees) at my time of leaving, in January. So no payments had even commenced.

 

As per item #2 - Even had the plan commenced, as it was a non-contributory scheme, no "own contributions" were to be made, anyway. The employer being the only proposed contributor to the plan.

 

If I ask Aviva and they confirm the plan was never started, can I demand payment from my former employer of an amount equivalent to that which they were contracted to, do you think?

 

(Fingers crossed).

[steampowered]

If the plan was never started, that means the employer was lying to you when they say they have made backdated contributions, in which case I would proceed straight to a letter before action followed by an ET1. Watch the three months minus a day time limit for claiming unlawful deduction of wages in the employment tribunal.

 

Even though you weren't making contributions yourself it was still a contributory scheme - the idea is that you build up a pot of money, and when you become a pensioner you use that pot of money to buy an annuity on the financial markets. Aviva may give you a refund but this sounds unlikely, otherwise just get it transferred into your new scheme