The Pensions Regulator is now flexing its compliance muscles
TPR flexes its muscles The Pensions Regulator (TPR) has published compliance and enforcement details that show it has had to use its formal powers to ensure employers comply with their auto-enrolment duties a total of 23 times.
The powers listed include its ability to carry out inspections and to issue statutory notices, including fixed penalty and escalating fines. The Pensions Regulator expects to see a corresponding increase in the number of occasions that it uses its statutory powers and issue fines. These figures will be reported in subsequent quarterly bulletins. The July bulletin contains details of a case where an employer was required to backdate pension contributions after failing to meet its duty to automatically enrol eligible staff. The case highlights the importance of an employer checking its staging date.
Charles Counsell, executive director of automatic enrolment at TPR, said:
“Employers and the pensions industry are understandably interested to know how and when we use our powers.
“To date, the vast majority of employers are complying with their new workplace pension duties without [TPR] needing to use our enforcement powers.
“I believe this is a testament to the success of our proportionate, risk-based approach to compliance and enforcement.
“We target our resources where they will maximise compliance and work with employers to help them comply with their duties.
“We have provided the tools and assistance that large and medium employers need to ensure millions of workers didn’t miss out on the pension contributions they are entitled to.
“On a small number of occasions, when our intervention has not resulted in the required outcome, we have used our powers to help to ensure employers comply with their duties.”
Taken from an article first published in Employee Benefits 4 August 2014 - By Jennifer Paterson
Petaurum Solutions Comment
With many large businesses now staged and running the Pensions Auto Enrolment processes every pay period, it is now time for the smaller businesses to start preparing for their staging, the date when they have to have implemented their Pensions Auto Enrolment obligations. Unlike the larger businesses where systems, processes and expertise are available, smaller businesses may face a different challenge in trying to ensure they meet their obligations and with the Pensions Regulator providing 300 pages of guidance and businesses needing to operate over 30 new processes, getting it right is critical, not only to ensure the regulator doesn’t impose any financial penalties for non compliance but also to ensure the set up and ongoing administration of Pensions Auto Enrolment is fully integrated into businesses systems, processes and practices.
With the fixed price Petaurum Solutions SME Auto Enrolment solution in your business you are in safe hands with access to a first rate Master Trust Pension Scheme offering your employees a wide range of investment options, including a sharia scheme, best in class Middleware to ensure you are assessing and communicating with your employees in line with legislative requirements and access to HR and Legal expertise to ensure your polices and contracts are also aligned. This means you are left to run your business safe in the knowledge that you are complying with all the Regulator’s requirements. With time running out, acting now will pay dividends in the long-term. Want to know more? Contact us we would love to speak to you.
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