Pay deduction arrears
Discussion
I suspect I know the answer I'm going to get. I'm just posting on the off chance this scenario may be slightly different.
I'm on a DB pension scheme. I used to earn a higher salary around 2 years back but took a cut to move closer to home.
A month or two later after the pay cut my pension statement (from RPMI) arrived showing old salary - I thought prob not updated yet.
A year later and another statement (from RPMI) arrives showing old salary. I phone and they confirm that is correct, I keep my highest salary pension but have to make the equivalent percentage payments (on the higher figure).
Statement looks good and correct as to what I would expect.
Last year I opted to pay extra contributions (not AVC, an increased percentage on my DB part)
I saw a couple of lump sum payments go out but no increase on the monthlies so contacted RPMI again.
A few emails later I get a definitive amount I should be paying from RPMI. That state any difference to that figure I have to take it up with my employer.
I question if I could be paying a smaller amount due to SMART and they state that is done on the employer side and to take it up with them.
I phone employer who after looking into it confirm the wrong amount has been taken and I have to pay the arrears.
I'm still waiting a figure but suspect it will be a couple of grand.
With the payment being taken under SMART arrangements, is there any responsibility on the employer to take the correct amount?
Somebody has cocked up and just stuck a random figure in the computer and it seems payroll are taking no responsibility.
All I see is a payment going out and my annual statement which is correct.
Thanks
I'm on a DB pension scheme. I used to earn a higher salary around 2 years back but took a cut to move closer to home.
A month or two later after the pay cut my pension statement (from RPMI) arrived showing old salary - I thought prob not updated yet.
A year later and another statement (from RPMI) arrives showing old salary. I phone and they confirm that is correct, I keep my highest salary pension but have to make the equivalent percentage payments (on the higher figure).
Statement looks good and correct as to what I would expect.
Last year I opted to pay extra contributions (not AVC, an increased percentage on my DB part)
I saw a couple of lump sum payments go out but no increase on the monthlies so contacted RPMI again.
A few emails later I get a definitive amount I should be paying from RPMI. That state any difference to that figure I have to take it up with my employer.
I question if I could be paying a smaller amount due to SMART and they state that is done on the employer side and to take it up with them.
I phone employer who after looking into it confirm the wrong amount has been taken and I have to pay the arrears.
I'm still waiting a figure but suspect it will be a couple of grand.
With the payment being taken under SMART arrangements, is there any responsibility on the employer to take the correct amount?
Somebody has cocked up and just stuck a random figure in the computer and it seems payroll are taking no responsibility.
All I see is a payment going out and my annual statement which is correct.
Thanks
Edited by Rick101 on Friday 7th July 11:56
Been through my old payslips.
(All under SMART) Highest pension payment was £263 back in 2014. Since then it's changed to 255, 232, 236, 209 and now 200.
Assuming it should have been £263 throughout, the difference between that and what I have actually paid is around £1400.
I spoke to Payroll again yesterday, she has opened a new request for someone to call me so no further info from them as yet.
Anyone got any advice on where I stand with deductions?
(All under SMART) Highest pension payment was £263 back in 2014. Since then it's changed to 255, 232, 236, 209 and now 200.
Assuming it should have been £263 throughout, the difference between that and what I have actually paid is around £1400.
I spoke to Payroll again yesterday, she has opened a new request for someone to call me so no further info from them as yet.
Anyone got any advice on where I stand with deductions?
It looks like you've been effectively overpaid and, therefore, Employer is entitled to recover the overpayment.
It's a bit strange how they've allowed you to keep a "higher" pension even though your salary has been reduced. As it's a DB scheme that would have played merry hell with the payroll system. In fact it should probably have gone through as AVCs otherwise your NI and Tax calls would have been all to pot.
TL:DR - yes employer entitled to recover. However I would raise it with your line manager and/or via Unions setting out why you're not happy and then see if a compromise can be agreed
It's a bit strange how they've allowed you to keep a "higher" pension even though your salary has been reduced. As it's a DB scheme that would have played merry hell with the payroll system. In fact it should probably have gone through as AVCs otherwise your NI and Tax calls would have been all to pot.
TL:DR - yes employer entitled to recover. However I would raise it with your line manager and/or via Unions setting out why you're not happy and then see if a compromise can be agreed
Had the letter. They confirm 200 vice £296 for the last year. Owe about £1200.
They're wanting to take £153 per month, plus I'll be less the £96 I should have been paying so will try and get them to adjust.
Usual frustration of not being able to contact the right person by phone. Have to raise a service request for someone to phone me. Have raised 3 SR's, had one phone call simply saying phoning as requested, no information or contact number left
They're wanting to take £153 per month, plus I'll be less the £96 I should have been paying so will try and get them to adjust.
Usual frustration of not being able to contact the right person by phone. Have to raise a service request for someone to phone me. Have raised 3 SR's, had one phone call simply saying phoning as requested, no information or contact number left
You are not entitled to benefit by the error made in the deductions. Your employer is able to require repayment. It is rare for repayment to be demanded as a lump sum. It is usually considered to be reasonable to allow repayment to be made over the same term as the error lasted, so if the error was in place for, say, two years, then you should be able to agree a "repayment schedule" for two years, with payment by instalments.
I do not think you employer can assume to make a "charge" against your pay to collect the repayment. I think there is case law that denies them this assumption. If you are willing to allow it then they should ask you to sign an authority for them to make that "charge", but if you're not happy then you and your employer will need to agree a repayment schedule.
R.
I do not think you employer can assume to make a "charge" against your pay to collect the repayment. I think there is case law that denies them this assumption. If you are willing to allow it then they should ask you to sign an authority for them to make that "charge", but if you're not happy then you and your employer will need to agree a repayment schedule.
R.
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