Pension Auto Enrolment Update
The number of fixed penalty fines issued to UK employers for breaches of new workplace pension rules increased dramatically in the last three months of last year. This increase would appear to be in line with the increasing number of firms becoming subject to the new regime.
Between October and December 2014, the Pensions Regulator issued 166 fines of £400 compared to just 3 in the previous quarter. The Pensions Regulator also issued 1,139 compliance notices over the same period, instructing employers to remedy a breach or risk a fine or further action.
However, the Pensions Regulator has also commented that the vast majority of employers have complied with their reporting requirements. Approximately 30,000 medium-sized firms with staging dates between April and July had reached their compliance deadline by the beginning of December.
Automatic enrolment began for the largest employers in October 2012, and will ultimately result in up to 10 million people saving more towards their retirement or saving for the first time. Under the programme, more than 1.3 million employers will have to automatically enrol workers into a pension scheme which meets certain minimum requirements, and will be legally obliged to make contributions towards the pensions of workers that do not opt out of the scheme once enrolled.
Should you require take advice on workplace pensions please contact our Gordon MacLean on 01463 239 393.