Workplace Pensions
The question
To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of paying the shortfall when employers are found to have unlawfully failed to contribute to their employee's pensions.
Answered by Torsten Bell
Under the Pensions Act 2008, every employer in the UK must automatically enrol their eligible workers into a qualifying workplace pension scheme and pay the correct pension contributions into that scheme.
The independent Pensions Regulator (TPR) has a statutory objective to maximise and enforce employer compliance with Automatic Enrolment obligations. In addition, pension scheme trustees and scheme managers also have a duty to monitor and report material payment failures to TPR. If an employer has failed to provide the correct pension contributions, they are required under Section 38 of the Pensions Act 2008 to address this and make good any shortfall
TPR data shows employer compliance is high, with 97% making timely and accurate contributions.
If an employee has concerns regarding their workplace pension, such as unpaid contributions, they should raise this with their employer in the first instance. An individual can report their employer to TPR if it is not complying with the law and/or make a complaint to The Pensions Ombudsman (TPO) who can investigate the complaint and provide a remedy if the employer is found to be at fault. TPO, in collaboration with MoneyHelper and TPR, has published a factsheet for customers about this: Workplace pensions – unpaid pension contributions | The Pensions Ombudsman
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