Salary > Pension contribution. Is a 2-3 week delay normal?

penners324

Silvertabby said:

scaashiana said:

Hi

My salary is paid to me on the last working day of each month.  My pension contribution is made through my salary at the same time.

My DC (I edited this to DC from DB previously, my error, it is DC) pension is with L&G and checking there, my pension contributions are normally received around the middle of the following month (i.e. 2-3 weeks after salary).  This delay seems excessive to me, given that payment transfers today are normally fairly instant.  There could be good reason for this and, before I start prodding and poking people at work, I thought I'd ask here.  Is this normal?  Where is that money during those 2-3 weeks?

I work for a large multi-national company. If you multiply my pension contribution by the c4000 people employed, that's a lot of money in a 'black hole' somewhere for several months every year (rough maths I know, not everyone contributes the same as I, but you get what I mean).

Your company is unlikely to send 4000 individual pension contributions on the last working day of the month. 

Much more likely that they will send a single payment for the total amount, with a list of all the individual amounts by name and NI number.  This list will take a while to collate and check then, on receipt by L&G, they will have to allocate the right amount to the right name.  

That's not how it works. It should be an automatic upload with L&G then taking a direct debit payment 

Silvertabby

penners324 said:

Silvertabby said:

scaashiana said:

Hi

My salary is paid to me on the last working day of each month.  My pension contribution is made through my salary at the same time.

My DC (I edited this to DC from DB previously, my error, it is DC) pension is with L&G and checking there, my pension contributions are normally received around the middle of the following month (i.e. 2-3 weeks after salary).  This delay seems excessive to me, given that payment transfers today are normally fairly instant.  There could be good reason for this and, before I start prodding and poking people at work, I thought I'd ask here.  Is this normal?  Where is that money during those 2-3 weeks?

I work for a large multi-national company. If you multiply my pension contribution by the c4000 people employed, that's a lot of money in a 'black hole' somewhere for several months every year (rough maths I know, not everyone contributes the same as I, but you get what I mean).

Your company is unlikely to send 4000 individual pension contributions on the last working day of the month. 

Much more likely that they will send a single payment for the total amount, with a list of all the individual amounts by name and NI number.  This list will take a while to collate and check then, on receipt by L&G, they will have to allocate the right amount to the right name.  

That's not how it works. It should be an automatic upload with L&G then taking a direct debit payment 

There must be some form of checking procedure in play here - at both ends.  

dawsonrm

The delay is also interesting at the end of the tax year. I get paid on 27th and the pension contribution usually appears on the 10th of next month. So for marchs pay the contribution appears after end of the tax year. For the purposes of the 60k annual allowance which tax year is it counted for?

dunstonh

dawsonrm said:

The delay is also interesting at the end of the tax year. I get paid on 27th and the pension contribution usually appears on the 10th of next month. So for marchs pay the contribution appears after end of the tax year. For the purposes of the 60k annual allowance which tax year is it counted for?

Payroll date is used.

Hoenir

Silvertabby said:

penners324 said:

Silvertabby said:

scaashiana said:

Hi

My salary is paid to me on the last working day of each month.  My pension contribution is made through my salary at the same time.

My DC (I edited this to DC from DB previously, my error, it is DC) pension is with L&G and checking there, my pension contributions are normally received around the middle of the following month (i.e. 2-3 weeks after salary).  This delay seems excessive to me, given that payment transfers today are normally fairly instant.  There could be good reason for this and, before I start prodding and poking people at work, I thought I'd ask here.  Is this normal?  Where is that money during those 2-3 weeks?

I work for a large multi-national company. If you multiply my pension contribution by the c4000 people employed, that's a lot of money in a 'black hole' somewhere for several months every year (rough maths I know, not everyone contributes the same as I, but you get what I mean).

Your company is unlikely to send 4000 individual pension contributions on the last working day of the month. 

Much more likely that they will send a single payment for the total amount, with a list of all the individual amounts by name and NI number.  This list will take a while to collate and check then, on receipt by L&G, they will have to allocate the right amount to the right name.  

That's not how it works. It should be an automatic upload with L&G then taking a direct debit payment 

There must be some form of checking procedure in play here - at both ends.  

Segregation of duties will split tasks up into multiple stages. Has to be checks and balances along with controls. Not least to prevent fraud.