Employer Contributions payment date.

Fly100

Hello all,
My Employer (and my own Contribution) does not get paid to the Pension Company until the 13th of the Month. Payday is the 26th of the previous month. approx 17 days after payday. Is this normal ? I've asked the question and the reply was it was its within parameters. A minor point, but multiply that by 12000 Employees its a lot of money sat somewhere every month for approx 17 days.
Is this the same where you work ?
Thanks for any info.
FLY

Paul_Herring

does not get paid to the Pension Company until the 13th of the Month. Payday is the 26th of the previous month. approx 17 days after payday. Is this normal ?

Yes. It's normal. And within the rules.

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

However the law requires that when you deduct contributions from your staff's pay you must pay these to your staff pension scheme no later than the 22nd day (19th if you pay by cheque) of the next month.

Is this the same where you work ?

Yup. They've started to get their act together when I pointed out the above to them, when it was regularly hitting my pension on the 23rd, 24th, and occasionally into the next month. They're regularly hitting the 19th at the moment.

Marcon

Paul_Herring said:

does not get paid to the Pension Company until the 13th of the Month. Payday is the 26th of the previous month. approx 17 days after payday. Is this normal ?

Yes. It's normal. And within the rules.

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

However the law requires that when you deduct contributions from your staff's pay you must pay these to your staff pension scheme no later than the 22nd day (19th if you pay by cheque) of the next month.

Is this the same where you work ?

Yup. They've started to get their act together when I pointed out the above to them, when it was regularly hitting my pension on the 23rd, 24th, and occasionally into the next month. They're regularly hitting the 19th at the moment.

P_H - Presumably this is a contributory scheme (i.e. employees pay as well as the employer)? If it's non-contributory, then the above deadlines don't apply (just to stop anyone else reading this thread thinking their employer is at fault).

Paul_Herring

If it's non-contributory, then the above deadlines don't apply (just to stop anyone else reading this thread thinking their employer is at fault).

Surely if the employer is deducting any money from wages before paying them, they should apply? (How does non-contributory work, given auto enrolment is a thing? Just wondering.)

garmeg

We get paid on the 25th of each month and our contributions hit the pension by the end of the same month. The only exception was March this year where it hit the pension on April 1st. This August was quick, pay day was 25th and the money was in the pension on the 28th. The company scheme is with Aviva.

Lockdown hasn't caused any issues here.

Anonymous101

Entirely normal I’d say. Smooths cashflow for the company.
I work for a large multinational company. Get paid 25th, pensions usually paid the middle of the following month.

JoeCrystal

Fly100 said:

Is this the same where you work ?

However, the companies got much longer to pay. The pension providers don't report it if it is more than 90 days late. Over the course of the last twelve months, it tends to average out at 64 days with most extended at 88 days between having it deducted from my payslip and seeing it in my pension fund.

garmeg

JoeCrystal said:

Fly100 said:

Is this the same where you work ?

However, the companies got much longer to pay. The pension providers don't report it if it is more than 90 days late. Over the course of the last twelve months, it tends to average out at 64 days with most extended at 88 days between having it deducted from my payslip and seeing it in my pension fund.

i guess at within a week of payday I am doing very well here.