Company has unilaterally stopped paying its pension contribution.

No - something like this (red highlighting is mine)...
Ombudsman for Pensions

 The Ombudsman for Pensions has the power to investigate and determine your complaints concerning disputes of fact or law and errors in relation to occupational pension schemes and PRSAs. The Ombudsman has the power to give any directions necessary to resolve the complaint or dispute and can give financial compensation (redress) but this cannot exceed the actual loss of benefit under the occupational pension scheme or PRSA. The Ombudsman does not have the power to award legal costs. All decisions made by the Ombudsman are binding between the parties subject to a right of appeal by either party to the High Court
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Ah yes the pensions ombudsman, good luck with that!!

The UK has a scheme wherein companies must contribute to a fund and this fund is used to compensate members who lose their pension money due to fraud/bankruptcy etc...
 
South said:
The UK has a scheme wherein companies must contribute to a fund and this fund is used to compensate members who lose their pension money due to fraud/bankruptcy etc...
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Is that separate from any other general savings/investments compensation fund like [broken link removed] for example and specific to pension funds?

What's the problem with the Ombudsman for Pensions?
 
No problem, just makes haste slowly - in any event the context of the Op's request was that he could make a claim for compensation without damaging the employer.

It is clear that the ombudsman will be going after the employer for the money, unlike the UK's PPF.
 
I think the original poster is being over-cautious about the repercussions for his employer. The Pensions Ombudsman has the power to pursue individuals for breaches of the Pensions Act in the event that the scheme itself cannot meet its liabilities.
 
Hi Jimmy

Before the Pension Ombudsman will consider a case, you must first go through an Internal Dispute Resolution (IDR) Procedure with the scheme trustees.

Given what you've told us so far about the way your pension scheme is run, it sounds like there's a distinct possibility that there may not be an IDR procedure in place. If this is the case, it would be a further breach of the Pensions Act by the trustees.

You could try approaching the trustees and asking to see a copy of the IDR procedures. This might put the skids under them and cause them to rectify the underpayment sooner than might otherwise have been the case.

I would be concerned that if you go down the whistle blowing route at this stage, you may end up with nothing. Your best chance of getting some or all of your money back may be to extricate a firm promise from them that they will have dealt with the arrears within a specific period of time and tell them that if this does not happen you will have no choice but to report them to the Pensions Board. Then, follow through on the threat if they don't meet the agreed deadline.

I also agree with other posters that it sounds like it might be a good idea to start looking around for another job. It does not sound like a good place to work and it's much easier to find a new position while you're still employed.

Regards
Homer
 
Homer said:
I would be concerned that if you go down the whistle blowing route at this stage, you may end up with nothing. Your best chance of getting some or all of your money back may be to extricate a firm promise from them that they will have dealt with the arrears within a specific period of time and tell them that if this does not happen you will have no choice but to report them to the Pensions Board. Then, follow through on the threat if they don't meet the agreed deadline.
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Thats what Im thinking - I have been given a firm promise and a letter last week from the Managing Director stating what has happened and a timeframe to resolve it so i want to see if they will honor that.
 
jimmyd said:
Thats what Im thinking - I have been given a firm promise and a letter last week from the Managing Director stating what has happened and a timeframe to resolve it so i want to see if they will honor that.
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You obviously can't claim compensation at the same time as having a promise from your company to recompense you.
 
jimmyd said:
Thats what Im thinking - I have been given a firm promise and a letter last week from the Managing Director stating what has happened and a timeframe to resolve it so i want to see if they will honor that.
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What's the timeframe like? have they agreed how much they owe you?

I'd be inclined to insist on an agreed timeframe such as (a) date by which they provide full historic records of pension payments etc. (b) date by which they have to provide a statement of how much they owe and (c) agreed repayment schedule, with these provided within a month (say) and the repayment schedule to last no longer than six months.

If they can't/won't agree to something like that, get that whistle out and start blowing....

Regardless of what happens, I'd be looking for a new job in the meantime.
 
Owe me €5600 in total, and said have said they will have 2K paid by end of september and 2K by end of november and then €1600 by end of january.
Now I can see all of this online and should be able to see from tomorrow my normal weekly payments going into the pension plan along with their repayments
The other 2 lads I know of in the scheme are only owed €800 each as they were not paying much into the plan where as I was paying max into it.
 
How are they paying this - e.g. into your hand (probably illegal tax evasion), via payroll (therefore liable for tax/PRSI), into the pension as backdated pension topup payments?

Are you losing out in terms of growth in the meantime and/or tax/PRSI relief?
 
jimmyd said:
Owe me €5600 in total, and said have said they will have 2K paid by end of september and 2K by end of november and then €1600 by end of january.
Now I can see all of this online and should be able to see from tomorrow my normal weekly payments going into the pension plan along with their repayments
The other 2 lads I know of in the scheme are only owed €800 each as they were not paying much into the plan where as I was paying max into it.
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It sounds like they're taking their time about it. Are you sure it's not just a stalling tactic? Also, can you check that they are now paying over the correct contributions each month?

Homer
 
It's being paid to the pension company as pension topup payments.
@Homer - yes I can now see online when they pay anything to the pension company.
 
Are they just paying in the value of the missing contributions, or are they paying in what those contributions would be worth now if they had gone in on time? If this has been going on for the last year, you should be looking for about 15% over the basic value of the missing contribution to make up for market appreciation.
 
Jimmy,

I would get in writing from the Managing director and all other relevant directors that if the repayments are not made by the company as agreed he will personally make them. I am thinking of a situation where the Company goes into receivership or liquidation before you are repaid in full.
 
@Seagull - Just my payments and the companys 5% is all i am getting from what I have got in the letter they gave me - I didnt even think about how much i am losing out on.
@Madangan - would this be legally binding? does it need to be done by a solicitor?
 
At this stage, the company would probably not welcome the attention of the revenue, pensions board or the gardai. I would say you have enough leverage to insist that your account be made good to the value it should be.
Are you definitely also going to be getting the company 5%, bearing that your contract does give the company an option not to pay this. If you're getting that as well, it may be as well to leave it be at that. I would recommend you get any agreement in writing, and signed by the relevant director.
 
Yes I am getting the companys 5% aswell as my own contributions that is why i havent brought up the losses as yet with them. Is an email from the company director good enough or has it to be signed?
 
Heres the letter I got from the Director


Jimmyd Pension Scheme Details

Member Number ***********
Owed by CompanyY to Pension Company:
December 2004 to April 2006 employer contribution was only paid at 1% as opposed to the agreed 5%, the difference each month over this period was €101.66 bringing a total value owed to €1,728.22. When the monthly direct debit starts with Pension Company on the
8/8/2007 it will begin to pay off this balance and it will be completed on or before December end 2007.
Total amount due per month from May 2006 till July 2007 is €152.50 which will give a total of €2,287.50 owed by CompanyY to Pension Company. As per above when the direct debit commences at the above date it will pay off this balance and it will be completed on or before October end 2007. This figure represents employee contribution and 1% employer contribution.
During this period the difference between the 1% contribution and the agreed 5% contribution is €1,524.90 this will be paid in two lump sums on or before December end 2007.
As and from the 25th July 2007 all contributions taken from Company as employer contributions will be at 5% until otherwise stated by both Jimmyd and DirectorX.

The company under the instruction of DirectorX took this step as an short term cost saving measure to help cash flow – this however proved to be a long term arrangement and was never either communicated to or agreed by Jimmyd, the fault of this and no communication rests solely with Director X as managing director.
This document is personally guaranteed by Director X, managing director Company.

DirectorX
Managing Director
​
 
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