Unpaid contributions to U.K. DC plans jump in third quarter

The number of unpaid contribution notices issued to U.K. sponsoring employers of defined contribution plans increased 191.5% in the third quarter compared with the previous quarter, the Pensions Regulator warned Thursday.

The number of notices issued due to unpaid contributions in the third quarter of the year was 1,026 up from 352 in the second quarter.

In addition, TPR said the number of compliance notices issued to automatic enrollment plan sponsors was up 17% to 15,420 in the third quarter from 13,185 in the second quarter.

"Employers may have seen their business change because of COVID-19, but their pension duties have not," said Mel Charles, director of automatic enrollment at TPR, in a news release Thursday.

"While we issued easements at the start of the pandemic, we closely monitored compliance and took action where necessary. We continued to target employers who committed serious breaches and where staff contributions were at immediate risk," Mr. Charles said.

In the third quarter, TPR said it also secured two confiscation orders from two men who stole retirement fund assets of £250,000 ($329,714) from Yateley Industries for the Disabled, a charity, and £292,000 from Focusplay Retirement Benefit Scheme.

The men, Patrick McLarry, who was CEO of the Yateley charity, and Roger William Bessent, trustee and administrator of FRBS, were ordered to repay the amounts by two separate courts and are facing jail time should they fail to repay.

Nicola Parish, executive director of front-line regulation, said in the release TPR is working to punish criminals but called on trustees and administrators to commit to safeguarding assets and pledge to combat scams.