Prof Chaos
Registered User
- Messages
- 11
Hi Apologies if this is in the wrong place but feel free to move it if so.
Looking for a little bit of advice.
My employer has just brought to my attention that AVC's have been deducted from my salary for the last 6+years but both the pension broker and company dont have a record of the avc being set up. So the money has been deducted but has gone nowhere. Normal pension contributions by me an employer have been going through fine.
So they are keen to rectify the situation, they are the ones that found the issue and brought it to my attention, it was during a transition phase when changing payroll companies. I have records of the before and after so it does all line up with a change in payslip format.
Question is what do do from here. They can pay me the lump sum and it would be taxed significantly or they can lodge a lump sum into my pension which would avoid the tax situation until retirement.
The amount is around 17.5K in missing payments (over 200 pm).
I'm assuming I've missed out on significant interest if the avc would have been going through as usual, so should I be adding interest on or how would I even calculate that?
If I was taking a lump sum to salary I guess that interest calculation would be different as it would have been just going in to my current account? They are doing their own calculations but want to make sure I'm not out of pocket.
Any advice greatly appreciated.
Looking for a little bit of advice.
My employer has just brought to my attention that AVC's have been deducted from my salary for the last 6+years but both the pension broker and company dont have a record of the avc being set up. So the money has been deducted but has gone nowhere. Normal pension contributions by me an employer have been going through fine.
So they are keen to rectify the situation, they are the ones that found the issue and brought it to my attention, it was during a transition phase when changing payroll companies. I have records of the before and after so it does all line up with a change in payslip format.
Question is what do do from here. They can pay me the lump sum and it would be taxed significantly or they can lodge a lump sum into my pension which would avoid the tax situation until retirement.
The amount is around 17.5K in missing payments (over 200 pm).
I'm assuming I've missed out on significant interest if the avc would have been going through as usual, so should I be adding interest on or how would I even calculate that?
If I was taking a lump sum to salary I guess that interest calculation would be different as it would have been just going in to my current account? They are doing their own calculations but want to make sure I'm not out of pocket.
Any advice greatly appreciated.