Workplace Pension Contributions Time Lag

thriftytracey

Hi


I called my workplace pension provider, Scottish Widows today for an update on the number of units I hold (no online service available yet) and I asked them when they receive the contributions.


My company has Salary Sacrifice and the contribution is taken from pay on 25th of each month. Scottish Widows advised they receive the cash on the 19th of the following month.


I wondered if this time lag was usual?

dunstonh

With workplace pensions it is.

ex-pat_scot

https://www.thepensionsregulator.gov.uk/en/document-library/codes-of-practice/code-6-reporting-late-payment-of-contributions-to-personal-pension-schemes




31. Employer contributions must be paid by the due date set out under the direct payment arrangements for paying them to the pension scheme. Member contributions deducted from pay must be paid to the pension scheme by the 22nd day (or 19th day if the payment is by cheque) of the month following deduction[9]. There are special rules for the first deduction of contributions on automatic enrolment under the Pensions Act 2008. The monitoring processes that managers set up should be able to easily identify the appropriate due dates and track contributions against these. This will assist in identifying contributions which are not paid in full by the due date.






I keep tabs on my employer, as there have been quite a few recent cases of late payments of my contributions.

Paul_Herring

I wondered if this time lag was usual?

Yup. Some companies try to get away with longer.

SuiDreams

We end with a bit of a lag, sometimes its Capita Holding onto cash for ages, sometimes our company send the cash to Capita, but then forgets to send the breakdown of who the cash belongs to.

JoeCrystal

Paul_Herring wrote: »

Yup. Some companies try to get away with longer.

I agreed, my employer is about four to six months behind when we see pension contribution paid into our pot.

fifeken

How do you find out the "due date"?

Alexland

Our contributions are invested in fund units in 2-4 working days after payroll.

Sea_Shell

I've just looked at my last statement out of curiosity, and see that, I get paid on the 25th, and Aviva appear to credit/receive the money, any time between the 7th and 21st of the following month. Strange how it jumps about so much!!

Paul_Herring

Sea_Shell wrote: »

I've just looked at my last statement out of curiosity, and see that, I get paid on the 25th, and Aviva appear to credit/receive the money, any time between the 7th and 21st of the following month. Strange how it jumps about so much!!

Same here it seems. Paid around 26th - these dates are the month after:

Snapdragon

My workplace pension provider is also Scottish Widows, though in my case they do provide us with an online portal. Similarly am paid on 25th of each month. The portal shows my contributions arriving quite consistently by the 8th of the following month.