Managing Employer Pension Contributions and Funding

Properly handling employer pension contributions is crucial to avoid fines from The Pensions Regulator (TPR).  


Here’s what you need to know:

Key Points  

  • Deduct contributions from staff salaries and ensure accurate and timely payments to the pension scheme. 
  • Contact your pension scheme provider or trustees if you’re uncertain about payment amounts and schedules. 
  • Non-compliance with contributions could result in fines. 
  • Maintain specific records and payment information. 


Contribution Amounts  

The contribution amount depends on the pension scheme’s rules. For automatic enrolment, there are minimum contributions required, currently totalling 8% with at least a 3% employer contribution. This timeline might differ depending on the pension provider. 


Payment Timing  

Contributions must be paid to the pension scheme on time. Deduct contributions from staff salaries and pay to the scheme by the 22nd day of the next month (19th if paying by cheque).  


Records and Information  

Keep accurate records for at least six years, including staff gross earnings and pension contributions due and paid. A copy of all Auto ‘Enrolment communications that need to be sent to the staff (eligibility letters, etc) also needs to be saved. 


Pension Fund Limits  

Be aware of the maximum amount that can be held in a pension fund without tax charges. Seek guidance from your pension scheme provider or trustees if needed. You can learn more about Pension allowance. 


For detailed guidance, our team at Husky will make sure you and your employees will have the financial experience they deserve and ensure compliance and send all communications but also keep an automated audit trail of everything. 

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Husky’s technology unlocks the power of workplace pensions for businesses of all sizes. We offer pension schemes, salary exchange, and payroll systems to enhance financial well-being and prosperity.