Pension contributions must be paid over to the Trustee no later than the 19th of the following month after deduction. In the first quarter of the year 154 SHPS employers paid contributions after the 19th of the following month. In the second quarter the number of employers who paid late reduced to 106 employers but this number is still far too high – it should be zero.
Whilst the number of employers who are late each month has reduced, The Pensions Trust continues to chase a large number of employers each month to ensure they submit data and pay contributions on time. Without the considerable effort and cost associated with this additional work, many more employers would be late.
Even with the additional support, three SHPS employers have recently been reported to The Pensions Regulator for failing to pay across their contributions within 90 days. In addition to being reported to The Pensions Regulator, all employees of those employers were also contacted in writing to advise them that their employer has been reported for late payment. These are statutory requirements with no discretion.
The Trustee has recently written to all employers about the introduction of an administration charge for late receipt of contributions. In addition, the SHPS Committee is also considering including the names of late paying employers in future editions of the quarterly Employer Update.