Employer pension - compensation?

[thekingisdead]

My GF and I spotted that her employer pension contributions during maternity leave were in breach of the law and HR policy (more generous than legal minimum)

They have acknowledged the error and are coming back with a figure for missed payment(s)

Does she have a right to request compensation for lost investment growth?

The contributions are significant and combined with the ‘exciting’ year in the markets last year the amount of lost growth will also be significant (compounded for the next X years)

[Mr E]

I would suggest yes. With the fund performance known, should be trivial to calculate the amount.

My employer ballsed up recently, and a back calculation was performed and an appropriate additional payment made.

[GT03ROB]

thekingisdead said:

My GF and I spotted that her employer pension contributions during maternity leave were in breach of the law and HR policy (more generous than legal minimum)

They have acknowledged the error and are coming back with a figure for missed payment(s)

Does she have a right to request compensation for lost investment growth?

The contributions are significant and combined with the ‘exciting’ year in the markets last year the amount of lost growth will also be significant (compounded for the next X years)

Would you have accepted less if the markets had tanked?

[thekingisdead]

“ Would you have accepted less if the markets had tanked?”

Don’t really see how that’s relevant.
We haven’t been in breach of maternity law and the HR policy. Not sure why she should be out of pocket for someone else’s **** up.

Trying to ascertain whether it’s likely to receive compensation.

[Ean218]

thekingisdead said:

“ Would you have accepted less if the markets had tanked?”

Don’t really see how that’s relevant.
We haven’t been in breach of maternity law and the HR policy. Not sure why she should be out of pocket for someone else’s **** up.

Trying to ascertain whether it’s likely to receive compensation.

But its very relevant, if your answer is no then you should only receive the missing payments, you will not be "out of pocket".

[Jackals]

thekingisdead said:

“ Would you have accepted less if the markets had tanked?”

Don’t really see how that’s relevant.
We haven’t been in breach of maternity law and the HR policy. Not sure why she should be out of pocket for someone else’s **** up.

Trying to ascertain whether it’s likely to receive compensation.

You should receive detriment. They should be able to work where your portfolio would have been if the payments had been correct.

[PHlL]

Ean218 said:

But its very relevant, if your answer is no then you should only receive the missing payments, you will not be "out of pocket".

No, it's completely irrelevant.

In the financial services industry, we mostly all work off an 8% simple interest calculation when it comes to retrospective payments, even in the midst of a market crash, as per guidance from the FCA

[mikey_b]

If the markets had tanked, then each pound of missed contribution would have purchased more units at the time. When the markets recover, the value of those additional contributions would be worth more again, so the OP's wife would still have missed out on growth. So requesting a measure of compensation seems entirely reasonable.

[The Leaper]

She should raise a complaint with her employer requesting an adjustment to reflect the loss of investment return due to the late paid contributions. If the employer's response is not satisfactory, she can contact the office of The Pensions Ombudsman asking that office to investigate her complaint. The PO's office sees many similar complaints and it is not unusual, after investigation, for the loss of investment to be added to the fund value.

Note that the PO will not take on a complaint to investigate until it has first been raised with the respondent (the employer in this case, it seems) and they have replied to the complainant.

Also note that this type of complaint is one for the PO, not for the Financial Ombudsman Service.

R.
.