Regulator Reveals Fines for Auto-Enrolment Non-Compliance
The Pensions Regulator has revealed details of a sharp rise in the number of UK employers being fined for failing to comply with legal obligations relevant to them in the context of auto-enrolment workplace pensions.
In the final three months of 2014 there were a total of 166 fines issued by the Pensions Regulator for non-compliance with auto-enrolment laws. This figure was up from just three during the previous three-month period from July to the end of September.
As well as dozens more companies being hit with £400 non-compliance fines, there was a significant increase in the number of compliance notices being issued by the Pensions Regulator in the final quarter of 2014. According to the latest figures, 1,139 compliance notices were sent out in the three months, compared with just 163 that were issued in the previous quarter.
A key reason why there has been such a sharp rise in non-compliance concerns across the country in recent months is that around 30,000 medium-sized UK employers reached a deadline for declaring compliance with new auto-enrolment laws at the beginning of December 2014.
“Employers should allow plenty of time to prepare for automatic enrolment and seek help quickly if they discover that they are at risk of not complying,” the Pensions Regulator advises in its latest quarterly bulletin on auto-enrolment enforcement.
“Our research shows that the majority of employers who have completed the process regret not allowing more time. Our message to employers remains ‘start your preparation early’.”
The regulator also pointed out in its quarterly bulletin that insolvent companies that continue to employ people are obliged to adhere to auto-enrolment rules in just the same way as any other employer.
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.