Demands from the Pensions Regulator (TPR) for NOW: Pensions to overhaul its administration system, have led to the pension contributions of hundreds of thousands of people being collected and invested.
In April 2016, an estimated £18 million of pensions contributions, affecting over 265,000 people, had not been collected by NOW: Pensions. There were ongoing problems with the collection, and also with ensuring that the correct amounts were invested for members. As a result, TPR served the trustee and the trust manager with an Improvement Notice and Third Party Notice respectively.
After TPR provided the trustee and trust manager of NOW: Pensions Ltd (NPL) with a deadline to fix serious and persistent administrative failings, TPR is now satisfied they’ve taken all reasonable steps to comply.
The trustee and NPL put systems and processes in place to monitor contributions, and TPR continues to work closely with the trustee to ensure that is correctly reporting the late collection of contributions from employers, as it is legally required to do.
Nicola Parish, TPR’s Executive Director of Frontline Regulation, said: “When we launched our investigation into NOW, the master trust had significant administration problems in the way it was handling data.
“In particular, its failure to collect contributions was causing problems for employers and the pension pots of members were not growing as they should have been. This was unacceptable.
“Pension schemes, including master trusts, should be in no doubt that we will act if we become concerned about the way they are being run. We will not accept failings that put members’ savings at risk.”
If you have concerns that a pension scheme is not being managed correctly, email email@example.com to report the issues.