United Kingdom

Ready for Compliance: TPR issues first AE breaches

November 2014

 

The Pensions Regulator has begun issuing out auto-enrolment fines to businesses who have failed to comply with auto-enrolment legislation.

According to The Pension Regulator’s own publication, Compliance and Enforcement Bulletin, three penalty notices resulting in fines of £400 each were issued, in addition to 163 compliance notices and eight demands for additional information on pension schemes.

David Parfett, Senior Consultant at Aon Employee Benefits said: “Although the numbers of employers who have been issued with fines or compliance notices are tiny in comparison with those who have completed their declaration of compliance, it is widely expected that as we get to the vast numbers of smaller firms, the regulator will be taking action on a much bigger scale.” He continued: “More worryingly, half of the recent investigations by the Regulator have uncovered breaches, and these are generally from the larger firms who should have the resources to ensure that auto-enrolment is implemented correctly.”

Statistics released from The Pensions Regulator in response to a Freedom of Information Request revealed that 47 per cent of auto-enrolment investigations have resulted in breaches, compared to 23 per cent last year.

Charles Counsel, executive director for automatic-enrolment at The Pensions Regulator described compliance notices as a ‘wake-up call’ for employers, and added that the majority of UK employers ‘want to do the right thing and comply with the law.’ However, too many smaller employers are leaving auto-enrolment implementation too late ‘or are failing to comply all together’. He added: “More than 33,000 large and medium employers have complied with their duties…[but] more than 1.25 million employers [still] need to comply with their new workplace pensions over the next three years. For all these employers, it is vital that they find out their staging date now, and plan early to ensure that they are ready in time.”

Summing up, Parfett said: “It is clear employers need support with auto-enrolment, so all-in-one solutions like Aon’s Littleblue 2go is targeted at helping SMEs meet their auto-enrolment challenges. Littleblue 2go includes an interactive planning tool to guide employers through all the various tasks that need to be completed.”

For more information about Littleblue 2go, visit www.getlittleblue.com.

 

 

Aon UK Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN.