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Pension query

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  • 17-05-2014 11:33pm
    #1
    blondediva
    Registered Users Posts: 4 ✭


    Hi can somebody please give me an answer as to why I had to pay €954.60 in pension contributions whilst returning from maternity ,unpaid maternity from company, only received state maternity benefit for the 6 months maternity.Usual monthly payment of 95.96.Their has been an aknowledgement from employers that an overpayment has taken place but in explanation of the deduction they say that because I returned to work within the pension year of April -march I had to pay my contributions. How can they work out my contributions when 1 I wasn't working and 2 not deducted at source as I was on maternity?

    Any insight would be appreciated


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    #2
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    If you are in a Defined Benefit (DB) scheme then your maternity leave probably counts as service for the purposes of calculating your pension so it would be reasonable that you make your contributions whether your employer was paying your wages or not.

    If it's a Defined Contribution (DC) Scheme then it doesn't make sense that you are forced to make contributions when not being paid by your employer but you really need to ask the payroll people in your company for a full explanation.


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    #3
    Clive
    Registered Users Posts: 1,799 ✭✭✭Clive


    OP, as Coylemj said you are most likely paying your own contributions for the six months (based on your pensionable rate of pay, not on what you actually received). This may be a rule of the scheme or a condition of employment.

    The amount is more than your regular contribution x 6 because you are probably paying the employer's contribution also.

    Watch your payslip to ensure that you receive tax relief for your own portion. As regards the employer's portion (if that's what it is) you can ask for a letter outlining it and submit it to Revenue at the end of the tax year to request relief. I've never been able to get a ruling from Revenue on that - some people get relief, some don't.


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