Your employer is usually responsible for deducting contributions from your salary, and paying these, along with any they make, into your pension. There are rules to make sure your employer does this, and within a reasonable amount of time.
When should my employer pay my pension contributions?
Your contributions
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.
This is not always the case if you’re using salary sacrifice to save for your pension. This is when you agree to exchange part of your salary for extra contributions paid by your employer.
If you’ve been automatically enrolled into a workplace pension, there are rules for the first deduction of contributions.
Your employer’s contributions
Employers pay their contributions to your pension scheme on a date agreed with the scheme provider or trustees.
Trustees of a defined benefit scheme must draw up and maintain a schedule of contributions.
Trustees of a defined contribution scheme must set up and maintain a payment schedule.
These schedules record the contributions the employer pays into the scheme, and when they pay them.
Personal or stakeholder pensions
Does your employer pay contributions into a stakeholder or personal pension for you? Then they must pay these by a set date agreed with the provider.
What if a payment is less than expected, or late, and the situation hasn’t been resolved within 90 days? Then your pension provider must report this to The Pensions Regulator. They must then keep you updated.
Find out how The Pensions Regulator and other organisations can help you in our guide Dealing with pension problems and making a complaint
What can I do if my employer is not paying my pension contributions correctly?
If your employer doesn’t pay your contributions in time, or at all, your first course of action should be to contact your employer. You want to try and find out why contributions have not been paid, and when you can expect this to be corrected. Put your request in writing, which can be a letter or email, and keep a copy of all your correspondence.
This will help you to get more information about why the payments have not been made which will then help you to decide your next steps. If your query is not resolved by your employer there are three services that can help you.
1. Contact us
Call us free on 0800 011 3797 or use our webchat. One of our pension specialists will be happy to answer your questions and help you understand your rights.
We can also provide you with support and guidance on whether you should report your enquiry to The Pensions Regulator and/or make a complaint to The Pensions Ombudsman.
Our help is impartial and free to use, whether that's online or over the phone.
Opening times: Monday to Friday, 9am to 5pm (helpline), 9am to 5pm (webchat). Closed on bank holidays.
2. The Pensions Regulator
In a workplace scheme looked after by trustees, the trustees must report the non-payment to The Pensions Regulator.
The Pensions Regulator regulates pension scheme providers and employers. It works to ensure employers meet their automatic enrolment responsibilities and pay the correct pensions contributions into the scheme on behalf of their staff. It can penalise employers if they fail.
In either case, you or the trustees can report the non-payment when the contributions are 90 days late. The trustees then have to keep you updated.
You can report your employer using The Pensions Regulator, whistleblowing service.
The Pensions Regulator might impose a fine if the right contributions aren’t paid on time.
In the case of fraudulent evasion to pay contributions to the scheme, this is an offence. This might result in a fine or custodial sentence.
Find out more about defined contribution and defined benefit pensions in our guide Workplace pensions: occupational pension schemes and group personal pension schemes explained
3. The Pensions Ombudsman
The Pensions Ombudsman is an independent organisation set up by law to deal with pension complaints. They look at the facts without taking sides and their service is free.
You can contact The Pensions Ombudsman if you’re not happy with the way your employer and/or workplace pension scheme has dealt with your situation.
The Pensions Ombudsman can investigate regardless of the value of any unpaid contributions.
Help might be informal through its Early Resolution Service or be more formal through its Adjudication service.
The Pension Ombudsman has the power to direct employers to pay any outstanding contributions into your scheme and any remedy may include making up for lost investment or interest depending on the circumstance.
The Pensions Ombudsman can also make an award for any distress and inconvenience you may have suffered.
Find out more at The Pensions OmbudsmanOpens in a new window
What if my employer becomes insolvent?
What if your employer has become insolvent – but they didn’t pay the company and employee contributions for a time before insolvency? Then claims can be made from the National Insurance Fund.
These payments are generally claimed by your pension administrator or Official Receiver in cases of liquidation, via the Redundancy Payments Service.
Claims can be made for the missing employer and employee contributions that were due to be paid in the 12 months leading up to the date of insolvency.
For contributions that fall outside this 12-month time limit, you – and the other members of the scheme – would become creditors of the insolvent employer.
If you are a member of a defined benefit scheme, and your employer becomes insolvent, a proportion of your pension may be paid out by the Pension Protection Fund, find out more in our guide.
