Pensions - Articles - TPR update on reporting late pension payments

 Kate Smith, Head of Pensions at Aegon, said: “In these challenging times, the Pensions Regulator has amended some of its rules on reporting late payments from employers for workplace pension schemes to focus on the more serious cases in these turbulent times. It’s important to stress there is no change in the employer’s responsibility to pass on both their own and their employees’ contributions to the pension provider on time, as agreed. Providers and trustees also remain responsible for monitoring and challenging late payments but for a temporary period during the crisis will have more time and discretion on how to resolve late payments issues. Contributions must always be paid as they are after all part of employees’ reward package, and should not be held on to by employers for other purposes. There has always been some flexibility where providers can work with employers to put in place payment plans which allows the correct contributions to be paid, over a longer time.

 “Ordinarily late payments are reported using the regulator’s portal once 90 days late. This will now change to after 150 days. There are other rules for persistent late payers and where fraudulent activity is suspected, when reporting happens sooner.

 “Pension providers will continue to report cases where the employer becomes insolvent, fraudulent activity is suspected, where outstanding contributions are £100,000 and above and where previously unpaid contributions have been resolved.”