Ensuring Compliance with Automatic Enrolment Regulations

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Ensuring Compliance with Automatic Enrolment Regulations: A Guide for Employers

Ensuring compliance with automatic enrolment regulations may seem straightforward at first glance – enrol eligible staff into a workplace pension scheme based on age and earnings criteria, and you’re good to go. However, the intricacies lie in the details!

When it comes to your organisation, here are some key questions to consider:

• Do you have the necessary controls in place to effectively manage automatic enrolment?
• Are you familiar with how staff are assessed and any potential exclusions that may apply?
• Do you understand upcoming changes to the regulations in the coming years?
• Are other departments within your organisation, such as payroll and HR, well-versed in the regulations and their implications?
• Do you know what official reporting is mandated and the associated deadlines?
• Are your staff fully informed about their pension options and obligations?
• Are you aware that the automatic enrolment rules cover procedures pertaining to staff recruitment?

While the above list is not exhaustive, answering ‘yes’ to each of these questions puts you in a good position. Unfortunately, many employers fall short in their compliance efforts.

The Pensions Regulator (TPR), responsible for overseeing the automatic enrolment legislation, has ramped up their enforcement strategy in recent years. Starting in 2018, TPR began conducting nationwide spot-checks on employers throughout the UK and more recently targeted those suspected of non-compliance. Employees have also been encouraged to report any non-compliance they observe from an automatic enrolment perspective. TPR’s Enforcement bulletin (up to 31^st December 2023) revealed that since the inception of automatic enrolment in 2012, 318,374 fines were issued for non-compliance. Out of these fines, 27,938 (8.8%) were related to the period from 1^st July 2023 to 31^st December 2023.

Despite these challenges, it’s important to note that the majority of employers are not intentionally breaking the rules; rather, compliance issues often stem from oversights, mistakes, or a misunderstanding of the regulations. In such cases, TPR focuses on education and guidance to help businesses improve their compliance practices.

At Cartlidge Morland, we can provide you with peace of mind by ensuring that you are adhering to automatic enrolment rules and assisting you in navigating any legislative changes that may arise. Our ‘Governance’ meetings play a pivotal role in this process. See https://www.cartlidgemorland.com/news/discover-the-power-of-good-governance/

For more information or an informal chat, why not speak to one of our Employee Benefits advisers today on 0207 709 5560.