Pension refund query

gemi

I just have a quick question on the time involved in pension refund.

I signed up for the company pension in February, and left my job at the end of June. As I was only in it 5 months, I was entitled to a refund if I so wished. I emailed the pension broker the week I handed in my notice to ask them about it, and to cancel my following month's pension being deducted. She said to get in touch once I was in the new job.

She didn't cancel the last month's deduction, so I had 5 months deductions due back at about €90 a month. I then contacted her at the beginning of July and asked her to confirm the total due back. She said she'd have to get a form from New Ireland, which she had now requested, get the total off them also, and she would let me know....

I hadn't heard anything, so I emailed her on Monday morning. She got back to me on Wednesday evening and said she still hadn't received the form and quoted an amount of approx €290 due to me after 20% tax deduction, which was about €70 short of what I was expecting... 5 X €90 = €450 - 20% = €360. I emailed her back with that breakdown, and asked her to confirm if I was missing something, and that I have the amounts on my payslips to show what was deducted, if necessary. I haven't heard anything since.

So, I'm just wondering does it really take this long to get a form!? Or should I escalate this if I don't hear something from her in the next few days. I haven't a holy notion about pensions, or how long things take, but I dread to think how much longer it's going to take for the form to be processed, if this is how long it takes for her to even get it! Nevermind getting the actual money back.

Liam D Ferguson

As a broker I find New Ireland reasonably efficient at processing pension claims. They turn around most routine tasks in about a working week. Some delays can sometimes be caused by a company pension scheme requiring signatures of one of the scheme trustees, but it doesn't sound like you've reached that stage yet. The difference between what you've paid in and what you're getting back may be explained by charges that were applied to your contributions on the way in.

I'd say chase the broker a bit - ring as well as e-mail.

Humour Me

The pension contributions that you paid would have been invested in the investment fund that you selected when you joined the pension scheme. If the value of the fund has dropped since you joined, the pension company will be refunding the current value and not the actual value of the contributions paid.

If the value if the fund had increased you could have gotten more back than you paid in.

You could contact the pension company directly and ask them to send you the forms directly to speed the process up. There are other options available to you but if you definitely want the refund, then you may not need to involve the broker.

Liam D Ferguson

Humour Me wrote: »

You could contact the pension company directly and ask them to send you the forms directly to speed the process up.

Strictly speaking New Ireland should not send forms out directly to a scheme member. The contract is between the pension scheme trustees and New Ireland so they should only send forms to the trustees, the employer or the broker. I know that sounds a bit mad but those are the rules.

Sometimes pension companies will send forms out directly to scheme members but if they do, it's because the broker or trustee has requested/authorised it or because they're just being obliging.

gemi

Thanks for the replies everyone.

I asked her about the timing, and she said it was normal enough to have to wait. She said NI were holding out to see was a June payment made for me, and she from what she can see it doesn't appear to have been....despite being deducted from my salary and appearing on my payslip. She asked me to check my payslip again, which I did and it certainly was deducted. So I asked her to follow-up with NI and if the contribution wasn't received, then I'll have to chase up with my previous employer. Not pleased. :mad:

Liam D Ferguson

gemi wrote: »

Thanks for the replies everyone.

I asked her about the timing, and she said it was normal enough to have to wait. She said NI were holding out to see was a June payment made for me, and she from what she can see it doesn't appear to have been....despite being deducted from my salary and appearing on my payslip. She asked me to check my payslip again, which I did and it certainly was deducted. So I asked her to follow-up with NI and if the contribution wasn't received, then I'll have to chase up with my previous employer. Not pleased. :mad:

An employer has a legal responsibility to ensure that any contributions are paid over to to the pension company within 21 days of being deducted from salary.

gemi

Liam D Ferguson wrote: »

An employer has a legal responsibility to ensure that any contributions are paid over to to the pension company within 21 days of being deducted from salary.

Good to know. I'll drop HR an email today, and call them tomorrow.

Thanks