Unpaid pension scheme contributions

Where your employer becomes legally insolvent, the Department for the Economy (DfE) may make payments from the National Insurance Fund certain contributions that are owed to an occupational or personal pension scheme.

Payable contributions

It is only “Persons competent to act” under the trust deed or rules of a scheme (for example, the trustees) that may apply for payment to a scheme.

The following contributions are payable:

  • unpaid contributions on behalf of an employee, that is contributions which have been deducted from the pay of the employee, but which have not been paid into the resources of the scheme, up to a maximum of the amount deducted from the employee’s pay in respect of his/ her contributions to the scheme during the 12 months ending on the day before the employer became insolvent
  • unpaid contributions payable by the employer on its own account, to a limit of whichever is the least of the balance of the employer’s contributions relating to the 12 months ending on the day before the employer became insolvent
  • the amount certified by an actuary as necessary for the scheme to meet its liability on dissolution for payment of benefits to the employees (this condition does not apply to “money purchase” schemes)
  • an amount equal to 10 per cent of the total pay of the employees concerned for the 12 months ending on the day before the employer became insolvent

Trustees or administrators of a scheme can/may apply for payment from the National Insurance Fund using form RP15 enclosing form RP16 (actuarial certificate) if appropriate.

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