Fines for Automatic Enrolment non-compliance?

1st June 2015 – an important date for Automatic Enrolment and smaller employers

Automatic enrolment for larger employers to enrol their employees into a workplace pensions scheme has been around for the best part of 2½ years. However, 1st June 2015 was a significant date for smaller employers.  This was the date when the first employers with less than 50 employees start to stage – the date at which automatic enrolment duties come into effect.

Between now and April 2018 the vast majority of the employers in the UK will find they must implement a Pension Scheme that conforms with Auto-Enrolment legislation, by enrolling employees into a workplace pension scheme if they are:

  • are aged between 22 and State Pension age
  • earn more than £10,000 a year
  • work in the UK

Automatic enrolment can be time consuming

The steps involved in automatic enrolment are detailed and can be time consuming, and include the following:

  • Knowing your staging date
  • Provide a point of contact for The Pensions’ Regulator
  • Check who you need to enrol
  • Create your Workplace Pensions action plan
  • Work out the costs of your Workplace Pensions
  • Check your payroll process
  • Choose a pension scheme
  • Assess and enrol your staff
  • Write to your staff

The message is to start early in choosing a Scheme or working towards making your existing Scheme qualifying and to make sure that your PAYE system is up to date enough to cope with Auto-Enrolment.

Possible fines for non-compliance

There are indications that The Pensions Regulator will be set to fine companies that do not comply.  Our experience to date, and indeed the advice from The Pensions’ Regulator is to start the process 12 months before your staging to avoid being caught up in the bottleneck of employers having to stage in the next 2 years.

If you need any help and advice on automatic enrolment, especially if you are a smaller employer, please contact us or call on 0121 693 0690.

0 comments on “Fines for Automatic Enrolment non-compliance?
  • SSAS and Legal Entity IdentifiersWhat are Legal Entity Identifiers and Does Your SSAS Need One? From 3rd January 2018 it will be a requirement for legal entities and structures to obtain a reference called a Legal Entity Identifier (LEI) from the London Stock Exchange in order for the trustees of a SSAS to carry on investing. This» Read More
  • Mr D.B.PML always puts my interests first. Being a fairly cynical type, I have not always found it easy to be convinced that the pension adviser I am talking to for advice and guidance is genuinely prepared to put my interests before his own potential earnings from commission!
  • SSAS – A solution to a business succession problemTwo directors with different goals A long established engineering Company client of ours traded from premises that were owned personally by two directors.  Each director held a small number of insured Personal Pension Plans. Director A wanted to set a firm date for his retirement.  Director B wanted to remain in service» Read More