United Kingdom

First AE escalating fines issued

May 2015

 

The numbers of UK organisations receiving auto-enrolment fines have increased in 2015, data from the Pensions Regulator (TPR) has revealed.

According to TPR’s quarterly bulletin, the first four escalated fines were issued during the first quarter of 2015, costing companies between £50 and £10,000 per day for failure to comply with a statutory notice. 213 compliance notices were also handed out between January and March, making the total number of issued notices rise to 1,529.

David Parfett, Senior Corporate Benefits Consultant at Aon Employee Benefits said: “With the number of employers being impacted by auto enrolment dramatically increasing, the probability of those failing to comply also increases, so it not surprising that the TPR has issued the first escalating fines. What will be interesting to understand is the reason these companies are failing in their duties and whether it was wilful.”

In the last three months of 2014, 166 employers were fined for failing to comply with auto-enrolment duties, bringing the total number of fixed penalty issues to 367.

Parfett added: “With over £1.2m employers still to meet their duties, given the levels of non-compliance cases so far, the numbers are likely to increase significantly, particularly as there is clear evidence employers need help to understand this complex legislation. Many of these employers will continue to turn to their accountant or payroll bureau to come to the rescue placing huge pressure on these organizations. There are situations that I have come across where employers have said to me ‘I thought that my accountant/ payroll bureau /adviser would just sort everything for me’. Fortunately, there are increasing numbers of products coming to market such as Aon’s Littleblue 2go aimed at guiding companies through the journey, but employers still need to be clear of their responsibilities.”

 

 

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