Non Payment to CIF pension

[telco]

My husband currently works for a small construction company . We recently called the CIF pension scheme to enquire about transfering his fund to his personal pension- we found out that it is not possible. During the conversation it came to light that his employer has not transfered any money to the scheme since May even though deductions are still being made from his wages. In the current climate his job is on a week by week basis regarding redundancy , several have already been let go. My husband did say it to his employer and was told there was no money to pay it , but he continues to take money from his wages. I am so angry about this I am on the verge of saying to my husbands boss myself but I am afraid to rock the boat, as he could be out of a job sooner rather than later. Any advice please ?

 

[LDFerguson]

What your husband's employer is doing is illegal. By law, an employer must pass pension contributions to the pension provider within 21 days of deducting them. You can contact the Pensions Board to report a breach of this.

If the employer's claim to have no money is true, unfortunately it sounds like the company is insolvent anyway. But the employer should not have been taking money from your husband's wages in an effort to sort out its financial difficulties.

The Pensions Board do follow up on such breaches. See here.

 

[telco]

Thanks for your reply, yes I remember that case from a couple of weeks back. If I do report it to pensions board, his employer may realise that my husband reported him as he did query it already with his employer.

I presume you can report the breach as anonymous ?

 

[LDFerguson]

Yes, I appreciate that it's a tough decision to make. On the one hand, your husband has the law on his side - the employer is breaking the law by keeping pension deductions and you cannot be fired because you report your employer for breaking the law. But in practical terms if the company is wound up or your husband is coincidentally made redundant shortly after making the complaint, it doesn't help you in the short term.

It certainly sounds like the company is in financial distress anyway if it has to resort to effectively stealing the employees' money to keep afloat. So unfortunately your husband may be losing his job pretty soon anyway. Would it be better for him to get his complaint in now while there may be some money left in the company?

I presume he's looking for alternative employment anyway?

 

[papervalue]

If the employer files the forms regarding pension deductions even without paying it over- it will be credited to your husband regardless of employer paying(Similar to paye/prsi when a end of year p35 is done) once paper work filed the employee is covered, non payment is not employee fault) The employee side is honured by revenue regardless of employer paying.