Stakeholder Pensions

Paying on Time

There are set time limits for paying over the employees' and any employer's contributions to the stakeholder pension scheme.

Employee's contribution

• Must be paid to the scheme provider within 19 days of the end of the month in which you made the deduction. e.g. deductions made in February must reach the provider by 19 March, regardless of whether deductions are made weekly or monthly.

Employer's contribution (if applicable)

You can decide the date that your contribution is to be paid.

Once decided you have to stick to that date

The date will probably be the same as the due date for the employee's contribution

By law the stakeholder pension scheme provider must monitor that payments are made on time, using a payment record.

This applies to all payments, whether you have to make the payroll deductions because of the stakeholder regulations, or whether you are making the deductions by choice

The scheme provider must tell OPRA if they receive payments from you that are late or if you miss payments.

If you make late or incorrect payments, OPRA may fine you

Ways To Pay

Payment methods to the stakeholder pension scheme provider could be:

• Direct credit transactions
• Direct debit transactions
• On the Internet, using direct debit
• By cheque
• Providers are permitted to refuse to accept payments in cash or by credit card

If the amount you are paying is different from the amount the scheme provider expects, you must send the provider an updated record explaining why the payment is different (e.g. if an employee has decided not to make any contributions that month)