1 in 5 Employers Run Late with Auto Enrolment Sign Ups
Thousands of UK employers are leaving it perilously late to create auto-enrolment pension scheme options for their workforces as new laws on the issue come into force.
According to the workplace pension firm NOW: Pensions, close to 20 per cent of its clients either fail to meet their relevant staging date deadlines or don’t initiate any efforts to establish an auto-enrolment setup until less than a month before their deadline is due to pass.
The auto-enrolment service provider has also revealed that one in 10 of its clients run the risk of being hit with fines from the Pensions Regulator by failing to get their workplace pension affairs in order on time. A further 8 per cent apparently only seek out the relevant services they need a few weeks prior to the staging date deadline relevant in their circumstances.
Plus, the company has also found that only 20 per cent of its clients are heeding the Pensions Regulator’s advice in terms of timescales and readying their operations for the introduction of auto-enrolment pensions 12 months in advance their staging date deadlines.
“While employers are being encouraged to get their auto enrolment plans in place early, the reality is a large proportion are leaving it late or missing the deadline altogether,” said Morten Nilson, NOW: Pensions’ chief executive. “For some, this is simply due to lack of planning and preparation, while for others, it’s due to being let down at the eleventh hour by another provider.
“We strongly recommend that employers follow the regulator’s advice and make their provider selection as early as possible to avoid unnecessary stress,” Nilson said.
The Pensions Regulator recently said it intends to write to almost 1.5 million small and micro employers around the UK reminding them of the obligations they will soon have to automatically enrol their staff onto workplace pensions.
Frank is Begbies Traynor's workplace pensions expert with 30 years' experience in the financial services industry. Frank has an outstanding track record working with some of the UK’s leading financial services and plays a key advisory role on matters relating to automatic enrolment. Frank is well known in the financial services circuit and has developed countless working relationships with professional introducer firms including accountants, solicitors and financial advisory companies.