PRSA deductions made but not paid over to provider by Employer

V

VenoBlanch

Guest
Hi guys,

I started my PRSA in September 2003 with my company. My monthly contribution was deducted on my payslip from my gross salary as per normal.

This company was acquired by another company around March 2004 but ceased trading under the old company name sometime in the last quarter of 2004. Under the new company name, my monthly payslip continued to show my PRSA contribution HOWEVER when I by chance rang my PRSA provider last week - I was informed that my "direct debit mandate had been cancelled by your[my] employer" and that my PRSA provider had not received any of my contributions since last September.

Given that my payslip,for the last 6 months, has continued to show my PRSA deductions from my gross salary - what are my legal options? Surely this amounts to theft? I am furious with my employer and would like to bring them to task for their inappropriate action with my funds.

Thanks in advance.
 
Given that my payslip,for the last 6 months, has continued to show my PRSA deductions from my gross salary - what are my legal options? Surely this amounts to theft?

On the face of it this is completely unacceptable. As it happens I'm in a similar position myself with my former employer who deducted my PRSA payment from my last salary payment but has still not yet remitted it (or the employer contribution) to my PRSA in breach of the relevant legislation which requires such payments to be remitted within about a month (or less?) of deduction. I am still chasing this up with them and will not let it drop until I gain redress. Has your employer given any explanation for this situation? You are certainly entitled to have these deductions/contributions remitted to your PRSA and you may want to try and get some compensation (e.g. in the form of a pension top-up) in lieu of the inconvenience caused. Deductions can only be made from salary with the consent of the employee and, in the case of pension/PRSA contributions, these must be remitted to the pension company within a few weeks. Give your employer a chance to respond/explain but if you are not happy with the explanation and certainly if they don't make good the deductions then don't let this drop - perhaps with a call to the DETE Employment Rights Section for advice.
 
Thanks ClubMan,

Sorry to hear you've the same problem.

No, they gave me no explanation whatsoever-I think they were hoping I wouldn't notice. I will check out the link you posted and hopefully get some satisfaction.

Thanks
 
Have you brought the matter to their attention and, if so, what did they say? Unless there is an innocent/reasonable explanation, which is still arguably not good enough from your point of view, I too would consider this theft. Let us know how you get on. Are you planning on looking for a new job sometime soon?
 
I casually mentioned it to the CEO - who said he'd sort it out.He admitted that they didn't take any of the pensions over with them when they took over the company I'd set the PRSA up with.

I didn't get angry with him - because it had already taken me over 3 weeks to get my Jan salary from them so I was all out of puff.

And I'm waiting to see if I get paid today for the month of Feb (the last day of the month is wages day - in theory) before tackling this issue head on. Then I will follow that link you recommended. I'd just love to teach them a very expensive legal lesson.

Yes,doing up my CV at the mo.

Thanks again.
 
You are perfectly entitled to get the benefit of the deductions made to your salary. Ideally you should get these remitted to the PRSA provider (and I personally would also look for some compensation for the illegal delay in remitting these). Otherwise you should at least get these handed over, most likely net of tax/PRSI and then you can always make personal contributions to your PRSA if you so choose and claim the tax/PRSI back . Other possibly organisations to contact over this are The Pensions Board, [broken link removed] and any industry lobby group of which your company is a member (e.g. ISME or the SFA for example). I presume that there's no union in your place of work who might be worth contacting? Sounds to me like you would be well advised to look for a new job all right. Good luck.
 
When you have finally had enough you should write to your employer seeking clarification of when your deductions were remitted and copy the Pensions Board.

The simple fact of the matter is that pensions legislation requires that monies deducted be remitted within 21 days - failure to remit is a serious problem.

The Pensions Board would presumably be interested in this breach of regulations.

z
 
Your employer is obliged to inform you that your pension contributions have been paid over. Most employers fulfil this obligation by adding a statement to the payslip. (although a seperate note or letter each pay period is also acceptable).

My pay slip says

"Last month's pension contributions have been paid over to..etc"


ajapale
 
Your employer is obliged to inform you that your pension contributions have been paid over. Most employers fulfil this obligation by adding a statement to the payslip. (although a seperate note or letter each pay period is also acceptable).

I never received this before. Must keep an eye out for it in the new job.
 
Thanks guys,

I just sent an email to the Pensions Board - I'll report back.
 
Are you going to also lose out on six month's worth of growth of your PRSA fund (for the late payments)?
 
Re: PRSA cancelled by employer

VenoBlanch
Was your transfer to your new employer covered under the Transfer of Undertakings.
I thought the new laws, obliged employers to provide a Pension.

Clubman
It is 21 days from the end of the month that you are paid. So if you are paid on the 1st of the month (ie : 1st January) The employer can argue that he does not have to hand over the contributions until ther 21st of February. I think that this is appalling. A small example of this occurred with myself. My employer decided to pay my wages a week earlier. It was weeks later that I realised that it meant that he had my monthly pension contributions a week longer in HIS bank account, multiply this by a few hundered and it could solve any of their cash flow problem.
This was the best information I could find on the net.

[broken link removed]
 
This interesting thread has been in the PRSA and Pensions forum for the last month or so. I thought it might be interesting to air it here in the Employment Forum.

ajapale
 
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