COVID-19 and Employer Pension contributions
Employers’ commitment to continuing to contribute
As a payroll software and outsourced services provider we are – rather worryingly – beginning to take questions from employers who wish to pause contributions into their employees’ workplace pension schemes.
While it is understandable that, in these challenging times, employers would be expected to do all that they could in order to safeguard their business, they have a commitment to continue making pension contributions.
The Pensions Regulator (TPR) released guidance on 20 March 2020 stating that employers needed to continue contributing and savers needed support in making good decisions during this time. As at the time of writing (25 March 2020) this guidance has not changed.
TPR have said that they will take a proportionate and risk based approach to enforcement decisions, due to the Coronavirus crisis, however if employers feel that they will not be able to fulfill their workplace pension duties, they should contact TPR.
For further information please visit The Pensions Regulator.