Law-breaking employers targeted with pension compliance checks
Employers who are not complying with their automatic enrolment pension duties are being targeted with short-notice inspections by The Pensions Regulator (TPR).
TPR is using data, intelligence streams and random test samples to pinpoint employers who are suspected of breaking the law, including those who fail to put staff into a pension scheme or who make no, or incorrect, pension contributions.
TPR will also be contacting other employers suspected of non-compliance to validate the information held to ensure they are fully complying with their obligations under automatic enrolment.
TPR’s Director of Automatic Enrolment, Darren Ryder, said: “TPR is increasingly led by our data and intelligence streams which enable us to detect potential non-compliance and take swift action against individual employers. This allows us to target our resources in a very focused way, as part of our role to protect pension savers. “
“We know the vast majority of employers are doing the right thing for their staff, however there are a small minority who persistently ignore their responsibilities. They can expect a knock at the door from us and enforcement action.”
The inspections started in May and will continue over the summer. Compliance with an inspection is mandatory and failure to do so may result in fines or court action.
In order to remain complaint with TPR, employers must monitor the ages and earnings of their staff and manage requests to join or leave a pension scheme. They must also keep records, maintain contributions and understand and comply with re-enrolment responsibilities.
If you would like any additional information relating to automatic enrolment or workplace pensions please contact our Payroll Partner, Graeme Sheridan on the details below: