Employer not making workplace pension contributions

Dogsareace1

Unfortunately, I’ve discovered my employer has failed to pay the pension contributions for all employees for the past 4 months. The deductions from pay have been made and it’s all recorded on the pay slips. 

The pension regulator is aware, the employer has stated they have cash flow problems and cannot confirm when the payments will be made to the pension fund.

It appears there is little I can do other than take break from contributing. 

I wondered if anyone had experienced this and how it worked out?

FlorayG

I would have thought that would be fraud - they are taking the payments from you and not doing what they are required to with them

jdl920p

I had this in a previous job, the employer gave some !!!!!! excuse and eventually the money appeared in the pension - I think it was also cashflow related.  The ultimate way to resolve it is to find another job.  There is also the risk your employer is trading whilst insolvent

This link useful

https://www.pensions-ombudsman.org.uk/sites/default/files/publication/files/MaPS%20TPR%20and%20TPO%20website%20factsheet%20final.pdf


It says if the Pension Regulator is aware you can also report to the Pension Ombudsman as an individual

LHW99

If you do take a break from contributions, at least open a PP or SIPP and contribute there. There won't be an employer contribution, but the tax relief will be collected by the platform.

If you do get another job, this work pension can always be transferred there once all the AE contributions have arrived.

Tommyjw

TPR can issue fines and go through courts so the fact they are involved is, in a way, all you can do for the moment and let that process take its course.

As mentioned you can go to the Ombudsman but its often better for situations where employer dosnt agree or isnt responding, in yours at least the employer seems aware, agrees, just has an excuse. In your case you'll end up with a complaint where (after a lengthy process) the Ombudsman says "Yes company X you owed him money" and they go "We know, we dont have the cash" and tbecause they have no powers to issue fines etc they then go "Oh .. TPR can enforce this" and it's back to the same place

When resolved make sure they have correctly back-dated the payments. That means for example if they fix this issue on 1 April .. if January 2025's contribution was £100 and as at the prices at that time it would have bought 100 units (£1 each) , if that's fund unit prices are now worth £1.05 on 1 April , they need to pay in 100 units @ £1.05 = £105 instead. They can't get away with not paying what growth you have missed out on.

penners324

Get the CV upto date

Hoenir

Unfortunately if your employer has cashflow issues. Making pension contributions will be viewed as low priority. The focus of the management will be on the survival of the business. 

Should the business become insolvent and an administrator appointed. They can make a claim on behalf of the employees from the Redundancy Payments Service for unpaid employees pension contributions.