Pension & Ex Employer

[Vasquoy]

My ex employer has been paying my pension since I left a year ago. Do i have to refund him the money?

[Vasquoy]

Sorry should explain further - I left a company about a year ago and I only just received my statement and it appears my ex employer has been paying MY contributions and his contributions since I left. Now I plan to tell them they have but what is the legal stand point for him requesting the money already paid back? The last statement was the first time I received anything showing the payments were still being made.

[buildersmate]

Are you talking National Insurance contributions that go to the Government or payments into your company (or private) pension scheme. And if the company scheme, is it a final salary scheme (defined benefits) or a money purchase scheme? Depending on the answers to these questions it may make no difference to you anyway. Employer should have stopped paying BOTH sets of contributions when you stopped working.

[cascarelli]

Well, as it's not your money I guess you should pay it back. Most employers would take it back over a period of time rather than a lump sum.

If it's only a small amount they may not think its worth the hassle.

[themas]

If its a company scheme its just possible the company will be able to get the money back from the scheme trustees, in which case you have nothing to worry about. If they can't then the money will presumably stay in the scheme and benefit you by giving you a larger pension when you eventually draw it. If this is the case then logically you should pay what would have been your contribution. However, I don't know whether the company could legally enforce this on you - or what the position is as regards their own contributions.

[Vasquoy]

Its a private pension as far as I know but he pays 4% into it and I was supposed to be paying �25 a month in as well.

[themas]

There are complicated rules about pension contributions, particularly for private pensions. It could be that making the contributions after you left breaches the rules (especially if you were not working or were working and making maximum contributions to another scheme), but only an expert can tell you.

I suggest you take this a step at a time. Tell your ex-employer what has happened and see how they react. If you are not happy with what they say, contact the pension provider and ask their advice.