4.2.14 Sometimes new entrants, through no fault of their own, do not receive their Starter Pack until some way into their first months service. In these circumstances, you should encourage individuals to return their Pension Choices form as soon as possible, but you should still allow them one month to make their choice if they need it. On receipt of the form, you should process it as quickly as possible, backdating employer partnership contributions to the first day of service.

4.2.15 In this situation, or if there is a delay in processing the partnership application form, you will need to tell the new entrant that you will backdate any employee contributions to their first day of service. Therefore, significant arrears could mean a big deduction from one month’s pay. See ‘Unscrambling’ (paragraphs 4.2.17 to 4.2.18).

4.2.16 A new entrant can vary their initial contributions to avoid significant arrears being deducted from one month’s pay. Individuals might, for example, choose not to make contributions for the months that are backdated, and only contribute for the future. They could do this by indicating a zero contribution on their provider application form and then opting for an increase by completing a contribution change form.

Published:
23 December 2021
Last updated:
23 December 2021