The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties.
1. Allow enough time to select your pension scheme
It’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the right pension provider.
2. TPR can help you get relevant information on your duties
TPR offers the Duties Checker system, so you’re aware of exactly what is required to comply. Ensure that your contact information is up-to-date and correct.
3. Using an adviser? You must agree who is doing what
Don’t risk penalties; advisers need to be clear about what services they offer, and you both should be clear about who is completing each auto-enrolment task and by when. Have an agreement in place, setting out clearly who will do what.
TPR Case study
The Pension Regulator has recently fined a company £10,000 for failing to complete a declaration of compliance and inform them that it hadn’t started automatic enrolment, even though it had engaged a financial adviser. It was only once the adviser contacted the regulator and put in place a scheme within four days, that the daily fine of £2,500 stopped. The regulator said the fines – along with payment of arrears and staff contributions of around £15,000 – could have been avoided had the employer complied on time. They failed to comply within the 60-day deadline and were given a further £400 fine, with 28 days to comply.
Don’t get caught out
If you’re not yet up-to-speed on auto enrolment, register now for your place at one of our auto-enrolment seminars.
Delivered by our pension experts, these sessions provide an introduction to the process and what your business needs to do to prepare. They also provide an overview of our solutions – helping your business to manage your auto-enrolment responsibilities.