What happens if my employer hasn’t paid my pension contributions?
If your employer has stopped making contributions to your pension, there are steps you can take to reclaim what you are owed. Find out what you can do.
Your employer is responsible for deducting your pension contributions from your monthly salary, and there are legal protections to ensure they do so by the 22nd day of the month after you were paid.
If this doesn’t happen, there are steps you can take to reclaim your payments.
Employers are required by law to pay the contributions deducted from your pay into your pension scheme by the 22nd day of the following month.
If your employer is not paying your pension contributions, or some payments are missing, contact it directly first.
You can contact the Pensions Regulator if your pension contributions haven’t been paid after 90 days.
If your employer has become insolvent, you may still be able to regain lost pension contributions.
Missing pension payments can affect your retirement planning, so speaking to an independent financial adviser may provide reassurance.
How do employer contributions work?
If you are enrolled in an employer-sponsored pension scheme, it is your employer’s responsibility to deduct pension contributions from your salary.
This should include its employer contribution to your pension, as well as your employee contribution .
These contributions should be made each month when you are paid.
If you have noticed that your employer has stopped making contributions, this may be due to a few different reasons and could, quite possibly, be an error.
However, it is a legal obligation for your employer to make these contributions, and if the situation isn’t corrected, there are steps you can take to ensure payments are continued.
Is it illegal for my employer not to pay my pension contributions?
Yes. Employers are required by law to pay the contributions deducted from your pay into your pension scheme by the 22nd day of the following month.
If payments are missing, contact your employer in writing first. If that doesn't work, you can report the missing payments to The Pensions Regulator or complain to The Pensions Ombudsman.
What if my employer stops paying pension contributions?
If your employer is not paying your pension contributions, or some payments are missing, contact it directly first.
This should be done in writing or by email. You should try to find out why contributions have stopped and when you can expect them to start again.
Remember to keep a record of all correspondence as evidence, as you may need these records to help reclaim your money in the future.
If your employer hasn’t rectified the situation by an agreed date, there are services and organisations that can help.
How can I contact The Pensions Regulator?
The Pensions Regulator is an independent organisation that ensures pension laws are being properly observed and adhered to.
You can report missing pension contributions to The Pensions Regulator if they are 90 days or more overdue, your employer is unwilling to pay, or payments are repeatedly late. Count the 90 days from the date the contributions should have reached your pension scheme.
If your pension contributions haven’t been paid after 90 days and your employer hasn’t already been reported, you can raise the issue with The Pensions Regulator.
To raise your case, you will need:
The name and address of your employer
Your employer’s PAYE number (if they have one)
The amount of money you believe is missing
Any further evidence that you want to send to the regulator
How can I contact The Pensions Ombudsman?
The Pensions Ombudsman was set up to investigate complaints independently and can instruct employers to make pension payments where they have been delayed.
In some cases, the Ombudsman can also instruct employers to pay compensation where any distress and inconvenience has occurred.
The Ombudsman will review all complaints independently, and some cases will be resolved quickly through its Early Resolution Service or its more formal adjudication service.
What if my employer has become insolvent?
Your pension savings should be safe if your employer goes bust.
If you are in a defined benefit scheme, your pension should be protected by the Pension Protection Fund.
Defined contribution pensions are not covered by the PPF, but the good news is that your DC pot is usually ring-fenced and held separately from your employer’s finances, so if your employer gets into trouble your pension savings should remain safe.
If there are any missed contributions from your employer in the last 12 months, your pension provider may be able to make a claim from the National Insurance Fund. Beyond that, you would need to make a claim through the administrator that’s managing the wind up.
Seek financial and pension advice
Missing pension payments can affect your financial planning.
Although there are steps you can take to regain what you are owed, you may need to make some short-term adjustments to your retirement planning.
Whether you need assistance pursuing missing payments or need help planning for your retirement, speaking to a qualified financial adviser can help.
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