Step-by-Step Guide to Completing Your Pension Declaration of Compliance

When hiring employees, it’s crucial to fulfil your legal responsibilities concerning your workplace pension. For UK employers, this involves completing a declaration of compliance for The Pensions Regulator. This guide will explain how to complete your declaration of compliance and the implications of missing the deadline.

Understanding the Declaration of Compliance

The declaration of compliance is a document that communicates to The Pensions Regulator the measures you have implemented to adhere to your auto enrolment responsibilities as an employer. This declaration must be completed within five months from your company’s start date, which is the day your first employee joins the company.

It is mandatory for all employers to complete the declaration of compliance, even if none of their employees are auto enrolled into a workplace pension scheme.

Importance of the Pension Declaration of Compliance

Completing the declaration of compliance is necessary to demonstrate that you are fulfilling your auto enrolment obligations. These responsibilities include:

  • Confirming your staging and re-staging dates
  • Maintaining employee personal details
  • Recording when contributions are made
  • Monitoring requests to join or leave the workplace pension scheme
  • Keeping track of employee ages and earnings

Failure to submit the declaration of compliance to The Pensions Regulator may result in a fine.

Consequences of Missing the Deadline

If a deadline is missed, it is essential to inform The Pensions Regulator as soon as possible. Additionally, you must clearly communicate the automatic enrolment process to your employees in writing and enrol them in a pension scheme. You may also need to retroactively pay employer contributions for employees or cover employee contributions to ensure they do not lose out.

Non-compliance can lead to legal repercussions, including penalty notices or, in extreme cases, legal action.

Required Information for Completing the Declaration

The declaration of compliance can be completed in as little as 15 minutes, provided you have all the necessary information. A declaration checklist can help you gather the required information, which includes:

  • Government Gateway ID, login, and password
  • Your contact information (name, address, phone number, and email)
  • PAYE scheme reference
  • Letter code from The Pensions Regulator
  • Employer name and contact information
  • Pension scheme type
  • Employer pension scheme reference

You can begin the declaration of compliance once you have received the letter code and PAYE reference from The Pensions Regulator.

Completing the Declaration of Compliance

To complete the declaration of compliance, either create an account on The Pensions Regulator’s Gateway or log in using your Government Gateway ID. It is advisable to start as early as possible, but you do not need to complete it all at once; you can save your progress and continue later.

Meeting your workplace pension obligations is a legal requirement, and compliance with the legislation is crucial. Non-compliance may result in financial or legal repercussions.

Sign up to our newsletters

Receive news and guidance on a range of HR issues direct to your inbox

This field is for validation purposes and should be left unchanged.

Penfold’s workplace pension makes things easy. Help with pension compliance is only ever a phone call away with dedicated 1-2-1 account management.

See how businesses are providing great pension experiences for thousands of employees. Book a demo of Penfold today.