Further to our e-update " Regulator Sharpens Its Claws as Auto-Enrolment Obligations Begin to Bite for SMEs", The Pensions Regulator has published its first auto-enrolment Section 89 report which highlights key lessons to help employers avoid non compliance.
The report sets out problems experienced by Dunelm Soft Furnishing Ltd (Dunelm) and the action taken by the Regulator.
Some of the key lessons learned in the report are:
- An employer who is experiencing challenges in meeting their auto-enrolment duties should contact the Regulator to discuss their situation.
- Sound corporate governance is essential to ensure that registration with the Regulator is completed accurately and on time. In Dunelm's case, key executives were not aware that a Compliance Notice had been issued.
- Payroll systems should be tested well in advance of the staging date to ensure they are able to fulfil the requirements of auto-enrolment.
- Smooth handover and consistency should be maintained in the event of key staff changes to ensure an employer achieves compliance with their duties on time. In other words – the auto-enrolment compliance folder should not be left in the bottom drawer waiting to be found!
The report shows how the Regulator worked with Dunelm to get it back on track towards compliance.
As we previously mentioned, with an estimated 32,000 medium-sized employers (i.e. those employers with 50-249 workers) expected to reach their staging date in the 12 months from 1 April 2014, it is imperative that employers have a plan in place for meeting their auto-enrolment obligations in plenty of time. Recent warnings from the industry have suggested that some pension providers will simply not assist with setting up an employer's new pension arrangements if it has left it too late.
MacRoberts can assist with the auto-enrolment process by reviewing existing pension arrangements to check whether they are compliant with legislative requirements. We can also assist in communicating with the Regulator.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
