How long does it take for your payday pension contributions to reach your personal pension?

P1Fanatic

I have a DC pension through work with Scottish Widows which I and my employer contribute to via Salary Sacrifice. I always check that my contributions reach my pension. We are paid last working day of the month and normally I can see the payment on Scottish Widows around 5-7th of the following month (sometimes as early as 2nd). However there have been several occasions in the past year where it doesn't arrive until the 10th or later. I've never understood why such variance - a couple of days maybe due to where weekends fall - but 5 days fluctuation?

Now I was last paid on Nov 30th. Today (Dec 13th) my pension contribution has not arrived with SW. I flagged this via my employer. And this is a snippet from their response:

Scottish Widows have changed the method they receive funds from <My Employer>, the pension will now show mid-month rather than at the beginning of the month.

The statutory deadline for the payment is the 22nd.

So they can take up to 3 weeks before adding the money to my pension. I am intrigued how quickly others (especially those with SW pension) see their money hit their pension?

I'm also curious what regulation the "statutory deadline" of 22nd of the month relates to as I could not find much on this.

FIREDreamer

I get paid on the 25th and my employer pension contributions show on my Aviva group pension at the end of the last working day of the month, so that means within 5/6 days.

P1Fanatic

FIREDreamer said:

I get paid on the 25th and my employer pension contributions show on my Aviva group pension at the end of the last working day of the month, so that means within 5/6 days.

Thanks. That is exactly what I was seeing with SW before and was happy with that. 2-3 weeks seems insane in this day and age.

SouthCoastBoy

i changed employer last year, and my new employer uses scottish widows as their pension administrator. I get paid around the 25th of the month, in dec it was in my plan, as an employer payment transaction, on the 12th, nov the 15th, Oct the 16th. i assume this is when my employer releases the money to SW, but that is a guess.

jimjames

Normally 3 weeks for mine

dunstonh

 I've never understood why such variance - a couple of days maybe due to where weekends fall - but 5 days fluctuation?

Your employer must pass your contributions to your scheme or provider by the 22nd day of the month (19th if they pay by cheque) after they were deducted from your salary. 

Now I was last paid on Nov 30th. Today (Dec 13th) my pension contribution has not arrived with SW. I flagged this via my employer. And this is a snippet from their response:

Scottish Widows have changed the method they receive funds from <My Employer>, the pension will now show mid-month rather than at the beginning of the month.

In reality, the employer picks the date of the payment.  Not the pension provider.    For our payroll, after the schedule of payments has been submitted, up pops the calendar to select the date we want to pay the total contribution. 

I'm also curious what regulation the "statutory deadline" of 22nd of the month relates to as I could not find much on this.I believe the pensions act 1995 laid out the requirement to pay within the "prescribed period" and later pension acts and then regulation built on that.

P1Fanatic

SouthCoastBoy said:

i changed employer last year, and my new employer uses scottish widows as their pension administrator. I get paid around the 25th of the month, in dec it was in my plan, as an employer payment transaction, on the 12th, nov the 15th, Oct the 16th. i assume this is when my employer releases the money to SW, but that is a guess.

I have also changed but my new employer also uses SW so will be interesting to see what happens there. Based on the feedback from my old employer they are suggesting the change is from SW but who knows - but the fact its happened in the past within a week and is now changed to 2-3 weeks after payday makes me think it is probably on SW side. If it was that way from the start I wouldn't even be questioning it. Not sure I will ever get a straight answer on who pays what and exactly when. But it seems crazy if SW can take your money aside for 2 weeks and not doing anything with it (for my benefit). 

dunstonh

But it seems crazy if SW can take your money aside for 2 weeks and not doing anything with it (for my benefit). 

They are not.

If the employer chooses a payment date 2 weeks later then the direct debit for the payment is not made until that date.  It sits in the employers account until then.

In the unlikely event SW are forcing a date on them, then again, the direct debit wont go out until that date.  SW are not sitting on any money.

Steve_666_

I have an Aegon pension and the dates that all the paper work appears to complete vary from a few days into the month, until mid month. For example, this month the money looked to arrived on the 4th, thou the online system didn't show this to much later. Fund distribution takes a variable nbr of additional days, and today (13th) they still have "pending" against some of the cash. Seems the back office systems are not that great!
in addition I had a query a little while ago and found that the end of March payments are made early, to ensure that the contribution falls into the correct tax year.

06-Nov-23	Regular Contribution (Salary Sacrifice)
02-Oct-23	Regular Contribution (Salary Sacrifice)
04-Sep-23	Regular Contribution (Salary Sacrifice)
08-Aug-23	Regular Contribution (Salary Sacrifice)
07-Jul-23	Regular Contribution (Salary Sacrifice)
12-Jun-23	Regular Contribution (Salary Sacrifice)
03-May-23	Regular Contribution (Salary Sacrifice)

Penguin_

Our pay day is the last day of the tax month, so thats the 5th. Our direct debit is set, by NEST, to the 27th of the same month & from there it takes them a few days to apply the contributions to my account. 

leosayer

My last pay day was 20th Nov - the contribution (part my salary deduction and part company's contribution) arrived in my pension (HL Group SIPP) on 21st Nov.