Contribution delay

SJNewbury

Can anyone tell me why there is such a delay between my employer taking my pension contribution out of my monthly salary and it being paid into the corporate pension scheme ?
Isn't this effectively my money that is uninvested for a month ?

londoninvestor

SJNewbury wrote: »

Can anyone tell me why there is such a delay between my employer taking my pension contribution out of my monthly salary and it being paid into the corporate pension scheme ?
Isn't this effectively my money that is uninvested for a month ?

You'd need to ask your employer really.

This isn't the norm - in my last job, the pension contribution was generally invested in funds within 2 working days of pay day.

shinytop

Don't know but mine is the same - 2 weeks or so delay.

JoeCrystal

My employer tends to take between two to three months before I can see the contributions in my work pension. When I asked them why it takes so long, my employer explained that it is because as people may opt out after getting opted in, they find it easier to make a refund within that amount of time. It seems the pension administer didn't have any problem with this which is surprising.

Paul_Herring

You employer is required to have the funds with the pension provider by the 19th in the month after the funds are deducted from your payslip at the absolute latest, so if you're paid at the end of the month, they generally have 3 weeks to send it.

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

https://www.thepensionsregulator.gov.uk/en/employers/managing-a-scheme/contributions-and-funding

If that's not happening, on a regular basis, have a word with your employer, or if that doesn't resolve it, report it.

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

ColdIron

I had a similar problem in the last few years of employment, contributions were very variable and could take up to 3 months to arrive. Your employer has an obligation to make timely payments. I brought this to the attention of my director (who had not noticed this and had a similar interest) and the practise ceased