Payment of pension contributions to defined contribution schemes
Produced in partnership with Wyn Derbyshire of gunnercooke LLP

The following Pensions practice note produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Payment of pension contributions to defined contribution schemes
  • Employers—requirement to make pension contributions on behalf of employees
  • Payment schedules—occupational pension schemes
  • Penalties for failure to establish or maintain a payment schedule
  • Payment schedules—exemptions and exclusions
  • Time limits for payment of contributions
  • Occupational pension schemes
  • Personal pension schemes
  • Monitoring of contribution payments—statutory obligations
  • Late payment of contributions—reporting obligations
  • More...

Payment of pension contributions to defined contribution schemes

CORONAVIRUS (COVID-19) UPDATE: In light of the coronavirus pandemic, TPR temporarily extended the period after which a payment failure becomes material, and must thus be reported, from 90 days to 150 days to give trustees and providers more time to work with employers to bring payments up to date. TPR has asked schemes to return to the normal, maximum 90-day late payment from 1 January 2021. Recognising that it may take time to adjust systems and processes to reflect this change, it will only become mandatory to report payments that are 90-days outstanding from 1 April 2021.
For more information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees.

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES AND PERSONAL PENSION SCHEMES.

In view of the nature of defined contribution pension schemes and particularly the fact that the retirement benefits ultimately provided by such arrangements are dependent on a host of factors, including the contributions paid to them, it is unsurprising that the prompt and accurate payment of such contributions is treated seriously both under the general law and by the Pensions Regulator. For further information on defined contribution schemes, see Types of pension arrangements for employees and Money purchase benefits—the statutory definition.

Employers—requirement to make pension contributions on behalf of employees

Until recently, there was no general

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