Employers Contributions - Frequency of payments

lizbef

My employer is supposed to pay 5% of my salary into my pension each month, as well as my AVCs. I've just got my annual pension statement and see that only about 5 payments were made into the scheme last year, some of them covering two or three months at a time. The total paid in over the course of the year was correct, but it's the regularity of the payments that concerns me.

Isn't it the case that the employer is taking the money from the employee each month and therefore should be making the payments on a monthly basis?

TH1878

lizbef wrote: »

My employer is supposed to pay 5% of my salary into my pension each month, as well as my AVCs. I've just got my annual pension statement and see that only about 5 payments were made into the scheme last year, some of them covering two or three months at a time. The total paid in over the course of the year was correct, but it's the regularity of the payments that concerns me.

Isn't it the case that the employer is taking the money from the employee each month and therefore should be making the payments on a monthly basis?

Yes, and they're potentially liable to huge fines (£5,000 per employee, per breach IIRC) if they don't.

At the very least, it could have worked against you in terms of investment return.

xylophone

http://www.pensionsadvisoryservice.org.uk/pension-problems/pension-security/paying-contributions-on-time

"My employer deducts my pension contributions each month but they seem to take an age to reach the insurer, and according to the pension statement from the insurer it seems to take about 60 days to reach my account. Are there any laws about timely payment

Contributions deducted from your salary should be paid to the pension provider by the 19th of the following month from which they were collected from pay or the 22nd of the following month if contributions are paid electronically to the pension provider. This requirement appears in the Pensions Act 1995 and it also features in the Pension Regulator’s code of practice."

Mirador

Contributions should reach your pension fund no later than the 22nd day of the next month

http://www.thepensionsregulator.gov.uk/employers/contributions-funding.aspx

lizbef

Very helpful replies. Thanks for your help.