Complaints for the Pensions Ombudsman rose by 43 per cent last year, according to new figures released today.
A total of 737 new cases were received by Ombudsman Paul Kenny, up from 515 in 2007.
In addition, 354 cases were carried forward from 2007, giving a total of 1,091 cases for the year. With 643 cases finalised in 2008, the number of cases carrying into 2009 is 448, an increase of 27 per cent.
Mr Kenny said there had been a significant increase in the number of complaints relating to Remittance of Contributions, where it is alleged that money was deducted have been taken from employees’ wages but not actually invested in pensions.
Overall there was a 200 per cent rise in such complaints with 101 cases referred to the Ombudsman last year compared to just 35 in 2007. The majority of cases concerned small construction firms, said Mr Kenny.
“With the increasingly difficult economic climate for business, it is vital that companies are not tempted to regard pension deductions as a source of temporary cash flow. These deductions are not, and must never be regarded by a company as part of their funding arrangements. These funds are the exclusive property of the employees and are not available to a company for any purpose”, he said.
The number of complaints referred to the Pensions Ombudsman has increased year on year, since the office was established. A total of 2,500 cases have been received since 2003.
