If you don’t keep up your pension contributions, The Pensions Regulator will find out!
Automatic enrolment (AE) is now business as usual for most employers.
Pension providers help the TPR (The Pension Regulator) to identify non-compliance. If an employer sets up a scheme but never pays into it, the TPR can be notified. Each case is examined and, if they find enforcement action is warranted, they act. Unpaid Contribution Notices (UCNs) can be sent requiring all backdated contributions to be paid within 28 days.
In the last quarter, TPR issued 753 UCNs demonstrating that they will take enforcement action where necessary.
New tool makes re-enrolment dates clearer
TPR recently launched a new tool to help employers going through re-enrolment. Every three years, employers must put eligible members of staff who left their automatic enrolment pension scheme back into it. But exactly when they have to do this varies from employer to employer.
The re-enrolment tool is easy to use and clearly displays key dates in the process, helping employers to understand what to do and when. Please get in touch if you would like any help using the re-enrolment tool.
Statistic of the month
This month marks the busiest period for declarations of compliance yet, with more than 100,000 already completed by employers in November.
Completing the declaration is an employer’s legal duty under automatic enrolment. It must be carried out regardless of whether or not the employer has any staff to enrol.
If your declaration deadline is approaching, make sure you comply with your duties and complete it as early as possible.
Are you ready to increase contributions?
From 6 April 2018, the minimum contributions employers and staff are required to pay into their automatic enrolment pension increases to 2% for employers and 3% for employees. This increase has been planned since automatic enrolment started and will help employees to save towards an adequate income when they retire.
Employers will need to work out how the changes affect them, including checking that their payroll services are compatible.
Make sure you have communicated the benefits of the changes to your employees. If you’d like any assistance with this, please contact us.
Source: The Pension Regulator