IGA News

Automatic Pension Enrolment - Increase in Penalties

Automatic Pension Enrolment - Increase in Penalties

31 October 2016

The law on workplace pensions has changed, and now every employer in the UK must put certain staff into a pension scheme and contribute towards it under the Pensions Act 2008. This is known as ‘automatic enrolment’.

The Pensions Regulator is the UK regulator of work-based pension schemes. In their new quarterly update they stated that they have issued 3,738 Fixed Penalty Notices between July and September, largely due to small and micro employers reaching their staging date and leaving it until the last minute. Are you guilty of doing this?

The Pensions Regulator also issued a reminder that if you receive a fine, the following are not ‘reasonable excuses’ for failing to comply:

  • You replied on someone else and they let you down
  • You found the online system too difficult to use
  • You didn’t get a reminder
  • You made a mistake
  • You or a member of staff were ill

If you haven’t started the automatic enrolment process for your business yet, there are lots of resources to help. Click here to begin The Pension Regulator’s Duties Checker, which will guide you step-by-step through your legal duties and tell you your unique ‘staging date’ - this is the date your automatic pension enrolment duties come into force.

You can also find a document library on The Pensions Regulator website to help guide you through the enrolment process, which contains detailed guidance, learning resources and research which you can download and print, and video guidance on their YouTube page.

Remember, automatic enrolment is your legal duty and if you don’t comply you could be fined.

For more information on automatic pension enrolment, visit www.thepensionsregulator.gov.uk, or call our member helpline on 0845 305 4230.