Employers struggling to meet their automatic enrolment duties should raise the alert with The Pensions Regulator sooner rather than later.
The warning comes as the regulator publishes its first automatic enrolment section 89 report which highlights key lessons to help employers avoid non compliance.
The report sets out problems experienced by Dunelm Soft Furnishing Ltd (Dunelm) and the action taken by the regulator. The account shows how the regulator worked with Dunelm to get it back on track towards compliance.
View the Dunelm section 89 report in section 89 reports.
Dunelm is now compliant with its automatic enrolment duties. The Pensions Regulator wants other employers to learn from the employer’s experience and avoid compliance risks.
Key lessons learned are:
- An employer who is experiencing challenges in meeting their automatic enrolment duties should contact The Pensions Regulator to discuss their situation.
- Sound corporate governance is essential to ensure that registration with The Pensions Regulator is completed accurately and on time.
- Payroll systems should be tested well in advance of the staging date to ensure they are able to fulfil the requirements of automatic enrolment.
- Smooth handover and consistency should be maintained in the event of key staff changes to ensure an employer achieves compliance with their duties on time.
Executive director for automatic enrolment Charles Counsell said:
"The Pensions Regulator focuses on a pro-compliance culture and employers and workers understand the ‘we’re all in’ message - 99.9% of employers who have completed registration have done so without the need for us to use our powers.
"This section 89 report shows however, that we will use the powers we have been given to take enforcement action where it is appropriate to do so.
"I am pleased to see that the employer in this case is now compliant with their duties. I would urge all employers to take heed from the lessons learned here so that they avoid the same pitfalls."
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