Employer delaying pension payments

Izzy666666

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

Pat38493

I think this question was asked some time ago.  I think it's not massively unusual for employers to pay pension contributions to the pension provider some time after the pay date.  I think a time limit of 3 months might have been mentioned but I can't remember exactly.  If that's the case, I guess it hasn't been 3 months yet.  

Generally though I would agree you are right to be concerned about this if you know that the company is having cash flow problems.

I am also not sure where those pension contributions will sit in the list of priorities for any remaining cash if the company were to fold.

Albermarle

Pat38493 said:

I think this question was asked some time ago.  I think it's not massively unusual for employers to pay pension contributions to the pension provider some time after the pay date.  I think a time limit of 3 months might have been mentioned but I can't remember exactly.  If that's the case, I guess it hasn't been 3 months yet.  

Generally though I would agree you are right to be concerned about this if you know that the company is having cash flow problems.

I am also not sure where those pension contributions will sit in the list of priorities for any remaining cash if the company were to fold.

I am pretty sure the limit is not as long as 3 months, so more reason for the OP to worry.

JoeCrystal

It is 90 days acutally. I know my employer does pay into pension just before that limit. It is when pension companies have to report it to the Pensions Regulator. I remembered the first time I got a letter from the pension company saying it is over 90 days late. It didn't take long before my employer just made sure to get it in before 90 days instead.

Shimrod

Albermarle said:

Pat38493 said:

I think this question was asked some time ago.  I think it's not massively unusual for employers to pay pension contributions to the pension provider some time after the pay date.  I think a time limit of 3 months might have been mentioned but I can't remember exactly.  If that's the case, I guess it hasn't been 3 months yet.  

Generally though I would agree you are right to be concerned about this if you know that the company is having cash flow problems.

I am also not sure where those pension contributions will sit in the list of priorities for any remaining cash if the company were to fold.

I am pretty sure the limit is not as long as 3 months, so more reason for the OP to worry.

Beyond 90 days late payment is a notifiable event to the pensions regulator. The employer can self-report or an employee can contact the regulator directly.

At 90 days late it is a potential breach of law, but cannot be reported before then. Delays can occur because of administrative hiccups, but from the description given this does sound like a business  in difficulty.

Marcon

Izzy666666 said:

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

I think the references above to allowing 3 months for an employer to pay contributions is confusing this with a different issue. An employer has 3 months from first employing an 'eligible' jobholder (forgive the jargon - basically taking on a new hire) to auto enrol them.

Contributions deducted from an employee's pay have to be paid over to the provider by the 19th of the month following deduction, so you are right to be concerned. Employer contributions should normally be paid at the same time. It can take a little while for contributions to be credited to your own account, but I'd take it up with your employer now and ask them to confirm what has been paid when.

Shimrod

Marcon said:

Izzy666666 said:

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

I think the references above to allowing 3 months for an employer to pay contributions is confusing this with a different issue. An employer has 3 months from first employing an 'eligible' jobholder (forgive the jargon - basically taking on a new hire) to auto enrol them.

Contributions deducted from an employee's pay have to be paid over to the provider by the 19th of the month following deduction, so you are right to be concerned. Employer contributions should normally be paid at the same time. It can take a little while for contributions to be credited to your own account, but I'd take it up with your employer now and ask them to confirm what has been paid when.

I am not confusing this with auto enrolment. Please have a look at the pension regulators page for the full details 

https://www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/report-concerns-about-your-workplace-pension/report-missing-payments-to-your-workplace-pension

Marcon

Shimrod said:

Marcon said:

Izzy666666 said:

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

I think the references above to allowing 3 months for an employer to pay contributions is confusing this with a different issue. An employer has 3 months from first employing an 'eligible' jobholder (forgive the jargon - basically taking on a new hire) to auto enrol them.

Contributions deducted from an employee's pay have to be paid over to the provider by the 19th of the month following deduction, so you are right to be concerned. Employer contributions should normally be paid at the same time. It can take a little while for contributions to be credited to your own account, but I'd take it up with your employer now and ask them to confirm what has been paid when.

I am not confusing this with auto enrolment. Please have a look at the pension regulators page for the full details 

https://www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/report-concerns-about-your-workplace-pension/report-missing-payments-to-your-workplace-pension

That link refers to reporting late payments to the Regulator. It does NOT give the employer 90 days to pay over contributions. It's 19th of the month following deduction from an employee's pay (or 22nd if contributions are paid electronically).

Employer contributions have to be paid in line with the schedule of contributions or payments, depending on the type of pension scheme.

Shimrod

Marcon said:

Shimrod said:

Marcon said:

Izzy666666 said:

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

I think the references above to allowing 3 months for an employer to pay contributions is confusing this with a different issue. An employer has 3 months from first employing an 'eligible' jobholder (forgive the jargon - basically taking on a new hire) to auto enrol them.

Contributions deducted from an employee's pay have to be paid over to the provider by the 19th of the month following deduction, so you are right to be concerned. Employer contributions should normally be paid at the same time. It can take a little while for contributions to be credited to your own account, but I'd take it up with your employer now and ask them to confirm what has been paid when.

I am not confusing this with auto enrolment. Please have a look at the pension regulators page for the full details 

https://www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/report-concerns-about-your-workplace-pension/report-missing-payments-to-your-workplace-pension

That link refers to reporting late payments to the Regulator. It does NOT give the employer 90 days to pay over contributions. It's 19th of the month following deduction from an employee's pay (or 22nd if contributions are paid electronically).

Employer contributions have to be paid in line with the schedule of contributions or payments, depending on the type of pension scheme.

This is not really helping the OP, but if you look at my first post I did not say the employer had 90 days to pay, but that it was not reportable the payment was 90 days late.

At 90 days the OP can get the regulator involved, which may or may not help depending on the exact reasons for non-payment.

Marcon

Shimrod said:

Marcon said:

Shimrod said:

Marcon said:

Izzy666666 said:

Hello, 

I am hoping to gain a bit more insight on the below before I discuss this with my boss. 

I work for a very small company (four employees including the owners) and over the past two months there are clear signs of cashflow issues. Many invoices unpaid, suppliers threatening legal action & last month my wages were paid a week late.
I am currently job searching and hoping to be out of this situation very soon. 

I checked my pension account this week and I realised that since August my pension contributions are not showing in my account. They are listed on my payslip, and have been deducted from my pay so I have paid them- but my employer has not added my or their contributions to my account for the last two months. 

I can also see that in May no contributions were paid, and in June double contributions were paid, so they backdated it. 

I would like a bit more information on if it is legal for employers to pay pension contributions in late, or if they must be made that month. I want to confront my employer on this, but I don't feel like I understand the subject enough. 

Many thanks in advance for any advice!

I think the references above to allowing 3 months for an employer to pay contributions is confusing this with a different issue. An employer has 3 months from first employing an 'eligible' jobholder (forgive the jargon - basically taking on a new hire) to auto enrol them.

Contributions deducted from an employee's pay have to be paid over to the provider by the 19th of the month following deduction, so you are right to be concerned. Employer contributions should normally be paid at the same time. It can take a little while for contributions to be credited to your own account, but I'd take it up with your employer now and ask them to confirm what has been paid when.

I am not confusing this with auto enrolment. Please have a look at the pension regulators page for the full details 

https://www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/report-concerns-about-your-workplace-pension/report-missing-payments-to-your-workplace-pension

That link refers to reporting late payments to the Regulator. It does NOT give the employer 90 days to pay over contributions. It's 19th of the month following deduction from an employee's pay (or 22nd if contributions are paid electronically).

Employer contributions have to be paid in line with the schedule of contributions or payments, depending on the type of pension scheme.

This is not really helping the OP, but if you look at my first post I did not say the employer had 90 days to pay, but that it was not reportable the payment was 90 days late.

At 90 days the OP can get the regulator involved, which may or may not help depending on the exact reasons for non-payment.

You're taking this too personally. I hadn't even seen your post when I made the comment about possible confusion with auto-enrolment.

Talking to the employer - as I first suggested - is the best way for OP to help themself. 

squirrelpie

Marcon said:

Talking to the employer - as I first suggested - is the best way for OP to help themself. 

The OP started the thread by saying they were going to talk to their employer. They simply want to know what the legal situation is before they do so, as would I in their situation.