Company has unilaterally stopped paying its pension contribution.

J

jimmyd

Registered User
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I joined the company I worked for 3.5 years ago and joined into the pension scheme they had already going.

The paper work I was given was that I would put a percentage of my salary into the pension and the company would match it. I took note of a section on the booklet that said if the company goes into hard fanicial times it does not have to pay its percentage.

This week I went to my employeer after asking for the last 3 months for my pension statement or details of what is in it and he came clean that 2 years ago they dropped the employeers contribution from 5% to 1% and had not told anyone.

Further questioning of him I found out that for the last year they had not paid the employees percentage to the pension company or the employeers contribution but had continued to deduct it from our wages.

I was told they have been talking to the pension company and were arranging a pay back schedule with them.

What can I do?
 
Re: Pension Fraud

Did you mention it to The Pensions Board (www.pensionsboard.ie) or The Pensions Ombudsman ([broken link removed])?

If not, they should be contacted.
 
Re: Pension Fraud

Talk to the Pensions Board immediately, even if your employer is planning to repay. If they did it once, they may do it again.

d
 
Re: Pension Fraud

It depends on what they did - if what you have said is true, then they have defrauded the pension fund, and by implication the employees.
 
Re: Pension Fraud

What happens to the employeer once reported? I havent made contact with anyone on this yet as the employeer told me by the end of this week he will have the repayment schedule done up so i was waiting on this as i think if i report them they may close down as have money issues and this could be the final blow and then i would not get back my pension money
 
Re: Pension Fraud

If you're afraid of the consequences of reporting, then don't report.

You can't ask the guards what would happen to someone for robbing you before you decide whether or not to report him/her!!
 
Re: Pension Fraud

I'll wait until I get this repayment scheme and see what it looks like and ive alos requested a monthly statement from the pension company to let me see the money is going back in.
 
Re: Pension Fraud

jimmyd said:
the employeer told me by the end of this week he will have the repayment schedule done up so i was waiting on this
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Employer should actually lodge more into your pension a/cg that they would have had to at the first place to compensate for the lack of interest earnings shall the money had been invested on a continious basis.
 
Re: Pension Fraud

I went to the trustee and she said to talk to the managing director in the company.
 
Re: Pension Fraud

jimmyd said:
I went to the trustee and she said to talk to the managing director in the company.
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Surely that is wrong and the trustees have ultimate responsibility here to protect the interests of the pension scheme members? You definitely should get onto the Pensions Board in my opinion. They also have some booklets outlining the responsibilities of scheme trustees. Is the trustee in any way linked to the employer?
 
Re: Pension Fraud

Trustees and Employer could both be liable to prosecution at this rate!
 
Re: Pension Fraud

If the trustees are aware of the employer withholding the employee contributions and they don't do anything about it, they are guilty of an offence.

d
 
Re: Pension Fraud

From your earlier posts it seems that you were a director of this company.
As such you had better thread carefully when accusing the company of fraud. You had obligations and responsibilities as a director.

The first port of call is the Trustees as they are responsible for ensuring money is received and invested. What does their last trustee report say about contributions?

You've lost the investment gains of your own contributions for the last 3 yrs. These were good times for pension investments so you have lost a good bit.

They also effectively cut your salary by 4% without telling you. Is this amount to be included in the repayment schedule ?

How about your PRSI - I would check if they have been paying this over as well.
 
Re: Pension Fraud

Yes I was a director for 6 months with this company along with the 3 other directors and 2 of us stepped down at the same time due to not being brought to any management meetings or shown any money figures.

The trustee is actually related to the director - we never received any trustee reports

My employeer today gave me accress to the online section of the company that does our pensions and I can now see what is happening when /if they pay into it and I also have been given a repayment schedule on the money owned to me and a letter that states that all of this was done without my knowledge over the last 2 years - they say they will have it all paid back by october this year with even the 4% reduction paid back.

Should i say nothing and see if they start paying and at least then I am getting my money back but without any gains and maybe when it is paid back i can get them to pay the gains that i should have made???

PRSI - is fine as I have checked this.
 
Re: Pension Fraud

I would not trust my pension with these trustees. If you don't want to rock the boat too much you may consider transferring your pension to a low cost PRSA and control it yourself.
Your employer can still pay his contribution into it. That way you know where you stand.
Are there other employees affected ?. Who will look after their interests or do they know about this problem.
These trustees should not be allowed anywhere near a pension scheme but I get the feeling this scheme was only for a few people, maybe directors ?. If there are no other employees affected you may be better to leave it alone to safeguard your job.
If there are other employees affected then you need to make a moral decision whether to expose this. The trustees and employer have breached so many rules it is hard to know where to start. The pensions board would certainly prosecute both parties. You would also have a very good case to personally sue the trustees for compensation.
 
Re: Pension Fraud

It looks like that there was only 5 people in the pension scheme - the 2 remaining directors and 3 employees (i being one) - I went straight to the other 2 employees when i found out and they are getting repaid as quick if not quicker then me as they were paying very little into the scheme where as i was paying alot every week.
I threatened the director yesterday with reporting him to the pension board yesterday so i hope that will inspire him to repay.

Do you think it is ok once i can see my pension money being paid on the pensions company website? i have access to that now and can see my balance and all payments that go into it.
 
Re: Pension Fraud

aidan119 said:
I would not trust my pension with these trustees. If you don't want to rock the boat too much you may consider transferring your pension to a low cost PRSA and control it yourself.
Your employer can still pay his contribution into it. That way you know where you stand.
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Hard to argue with this. Give them a month to make up the short fall, tell them if they haven't paid it up by then you will report them. Hopefully you'll get your money and can then move it to a PRSA.

Personally as well as moving my money I'd also move jobs. The company directors clearly have no respect for their staff.
 
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