5.3.5 The partnership pension account is an occupational pension scheme under a Master Trust. It is therefore vital that you follow the correct procedures. Occupational pension schemes under a Master Trust are regulated by The Pensions Regulator. This means that the pension provider has strict guidelines to adhere to, including the recording and timing of contributions. This also applies to AVCs.

If you or your payroll provider does not send the contributions within the statutory timescale of the 22nd day (19th day if paid by cheque) following the month in which they were deducted from the policyholder’s salary, the pension providers are obliged to tell The Pensions Regulator. It is not the responsibility of pension providers to chase late contributions. This means that unless you tell the pension provider why the member’s contributions have not been sent to them, they will report them to The Pensions Regulator as “not received”. Because of this, it is important that you tell the pension provider the reason contributions have not been sent. The reasons could include:

  • the member has moved to another employer covered by the CSP arrangements;
  • the member has left the Civil Service;
  • the member is taking a contribution holiday i.e. where the member is on a career break or unpaid leave;
  • the member has retired;
  • the member has died;
  • the member has switched between pension schemes.

The Pensions Regulator will publish on their website any employers who fail to meet these requirements. The Pensions Regulator will fine an employer who persistently fails to meet their statutory obligations.

For details about payments see sections 3.5 ‘Paying for Civil Service pensions’ and 4.2 ‘Your responsibilities when staff join partnership’.

Published:
4 January 2022
Last updated:
4 January 2022