Pensions - Articles - Employers reminded of AE duties as penalties rise


The Pensions Regulator (TPR) is reminding all employers of their automatic enrolment (AE) responsibilities as new figures show an increase in penalties issued.

 TPR’s quarterly compliance and enforcement bulletin shows a 191.4% increase in unpaid contribution notices (UCN) – from 352 to 1,026 – and a 17% increase in compliance notices (CN) – from 13,185 to 15,420 – compared with the previous quarter.
 The figures show how the regulator is continuing to be tough with employers who don’t comply with their AE duties.

 Mel Charles, Director of AE at TPR, said: “Employers may have seen their business change because of COVID-19, but their pension duties have not.

 “While we issued easements at the start of the pandemic, we closely monitored compliance and took action where necessary. We continued to target employers who committed serious breaches and where staff contributions were at immediate risk.

 “As predicted, we are seeing a return to normal levels of enforcement activity in line with our expectations, but we will monitor this closely.

 “Indications are that the majority of employers are paying their contributions in full and on time and we have not seen any unusual increase in reports of late payments by pension schemes.

 “However, employers must remember their pension duties continue and failure to fulfil them may lead to legal action.”

 The bulletin also shows how TPR secured its first confiscation order under the Proceeds of Crime Act (POCA) 2002 in September when a fraudster who swindled a charity’s pension scheme out of more than £250,000 was told he must pay back the money he stole or face further jail time.

 In a separate hearing in October, which will be reflected in next quarter’s bulletin, TPR secured a second confiscation order under POCA for a fraudster who defrauded a scheme of £292,000.

 Nicola Parish, Executive Director of Frontline Regulation, said: “Our two recent court successes show that we’ll use every weapon at our disposal to ensure pension criminals do not benefit from their crimes at the expense of hardworking savers.

 "Our enforcement work will continue to see criminals punished, but we also expect industry to help ensure savers’ money isn’t stolen in the first place. All providers, trustees and administrators should commit to safeguarding savers by joining our campaign and pledging to combat pensions scams.”
  

Back to Index


Similar News to this Story

Trouble ahead for pensions after insolvency protections end
Aon has said that a ‘perfect storm’ could be awaiting many UK pension schemes once the temporary protections from corporate insolvency are lifted at t
AMNT welcomes taskforce of Pension Scheme Voting
AMNT welcomes establishment of the Taskforce on Pension Scheme Voting Implementation and Simon Howard as its Chair.
The PPF publish The Purple Book 2020
The Pension Protection Fund (PPF) has published The Purple Book 2020, which shows increased risk in the universe of defined benefit pension schemes as

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.