Currently Staffology pays an employees first months contributions across to the pension provider even though the funds are not invested until the following month. This is to allow employees the opportunity to opt out and easily have their refund processed through payroll.
As per below from the pensions regulator the first months contributions payment can be paid at a later date, or in our situation the following month.
First payments for automatic enrolment
There are special rules for the first payment of contributions for each member of staff. To help you manage refunds for staff who ask to leave your scheme, some schemes may allow you to pay the first three months of contributions in one go on the 22nd of the fourth month. Speak to your scheme provider for more information.
Hey Craig - thanks for your idea! Unfortunately this is not something we would look to implement as it would be a fundamental change in all our pension files and connected services which are already being processed and accepted by pension providers. Most pension provider will accept the first contribution from the employee but will not collect payment until the following month from the employer. (After the opt out period has finished).