Reporting MPF default contributions: anonymous complaints accepted

This article is a rewrite of a report from May 2012.

MPF default contributions by employers are the MPFA’s most common complaint category. In 2010–11 the authority received 4,992 complaints, most about employers defaulting on contributions, followed by employers failing to enrol staff in a scheme. Want to report but afraid your boss will find out? The MPFA says anonymous complaints are accepted.

How common is employer default?

The MPFA received 4,992 complaints in 2010–11, mostly over defaulted contributions. Cracking down effectively depends on employees speaking up — the earlier a breach is found, the better the chance of recovering arrears. Trustees must report any default they spot when processing monthly contributions; employees have no legal duty to report, but many do to protect their own interests.

Will the employer find out who complained?

Many employees stay silent for various reasons — such as fearing dismissal on some pretext after complaining. To balance enforcement with protecting employees’ interests, the MPFA keeps complaints from those who withhold their identity strictly confidential: provide details of the suspected breach and the authority will follow up and investigate. After receiving a complaint, the complainant is normally asked to sign a consent form confirming whether they agree to disclose their identity to the employer.

What penalties do defaulting employers face?

The MPFA deploys several tools against default: contacting employers to demand correction, levying surcharges or fines on arrears, civil claims to recover contributions, prosecuting offending employers, and proactive inspections that uncover breaches while also explaining the rules to employers and employees. Where a complaint is upheld, arrears are pursued through advice, civil or criminal prosecution; everything recovered — plus surcharges — goes in full into the employee’s MPF account via the trustee, with no fees charged.