I am a new employer and want to know when I have to submit my pension payments for my employees?
Pension regulations require employers to submit all contributions to the administrator of the plan by the 15th day of the month immediately following the month in which they fall due. That means that September’s payments must be received by 15 October.
Late payments are legally subject to interest charges (prime rate plus five percent).
The interest fees charged to employers for late payment go towards compensating employees for any loss of investment earnings on their contributions due, which have not reached the fund. Interest payments will be added to the employee’s pension accounts.
All plan administrators are legally required to report delinquent employers to the National Pensions Office.
Sandy Chapell is the manager of Pensions for The Fidelity Pension Plan. Sandy is a Chartered Accountant with more than 15 years experience in the pension administration and finance fields. She can be reached for questions at 949-7822 ext. 2206 or at [email protected].