Millions of employees across the UK may be entitled to extra pension contributions that some businesses have failed to pay. Those aged between 22 and 66 earning over £10,000 a year are automatically enrolled in a workplace pension, but some employers are neglecting their obligations, leaving workers without their full entitlement.
The Pensions Ombudsman receives hundreds of complaints each year regarding missing contributions, with some employees owed thousands of pounds. Workers are being urged to check their payslips and pension statements to ensure they are receiving the payments they are entitled to.
Automatic enrolment and employer responsibilities
Under the auto-enrolment scheme, introduced in 2012, employers are legally required to contribute to their workers’ pensions. According to The Pensions Regulator, any employee who is at least 22 years old, below the state pension age, and earning more than £10,000 annually must be enrolled in a qualifying workplace pension scheme.
Businesses must contribute a minimum of 3% of an employee’s qualifying earnings, with the employee contributing at least 5%, bringing the total pension contribution to 8%. However, some companies fail to make these payments, either due to financial difficulties or administrative failures, leading to a significant number of workers missing out on their retirement savings.
The Pensions Ombudsman has the authority to investigate complaints and take action against non-compliant employers. In some cases, businesses found guilty of withholding pension contributions have been ordered to repay missed payments in full, as well as compensate employees by up to £1,000.
How workers can check and claim missing contributions
Employees who suspect they have missing pension contributions are advised to first contact their employer to resolve the issue. If the matter remains unresolved, they can escalate their complaint to the Pensions Ombudsman or The Pensions Regulator, which enforces compliance with pension laws.
According to the Pensions Ombudsman, workers can submit a formal complaint if they believe their employer has failed to contribute the required amount. Additionally, support is available through organisations such as MoneyHelper and The Pensions Regulator, both of which provide guidance on recovering lost pension payments.
The issue predominantly affects smaller businesses, where pension administration errors may be more common. However, any employer failing to meet pension obligations risks legal penalties, including fines and enforced repayments.
