Auto enrolment non compliance crackdown.

Regulator gets tough on auto enrolment non compliance

Saturday 25 October, 2014

Mark Boyle the new Pensions Regulator Chairman used a speech at the NAPF Conference in Liverpool in October 2014 to confirm The Pensions Regulator will use its powers if employers fail to comply with auto enrolment.

Boyle is concerned that when SMEs auto enrol from 2015 non compliance will become more common.

Boyle said, “We expect that as the number of employers subject to the duties goes up we will see more non-compliance. As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all. This type of non-compliance is not acceptable, and we will use our powers, including compliance notices, fixed penalties and escalating penalties where appropriate,” (Source: Pension Regulator website).

Richard Porter Investment Consultant at Lonsdale Benefit Consultants said: “the regulator has a range of powers to tackle non-compliance including serving penalty notices of up to £10,000 a day for larger employers that do not comply. Last year The Pensions Regulator worked with high-risk employers to prevent non-compliance, but as more companies auto enrol this is going to be harder to do.”

Richard Porter is a Director at Lonsdale Benefit Consultants. Auto enrolment services are offered as part of the employee benefit scheme.

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