Pensions - Articles - Worrying decline in employer awareness of auto enrolment


A report on automatic enrolment published today by the Pensions Regulator shows the huge impact that the programme has had in driving up workplace pension membership.

 But the survey shows a worrying decline in the extent to which employers are fully aware of their duties. Under the legislation, employers have ‘five duties’ which are:
 • keeping records of all AE activities

 • monitoring the ages and earnings of new and existing staff every time they are paid to check whether they are eligible to join the pension scheme

 • enrolling staff and writing to them as they become eligible to join the pension scheme

 • managing requests to join or leave the pension scheme

 • paying contributions into the staff members’ pension scheme.

 The new report shows (p18) that only 82% of ‘micro’ employers are aware of all five duties, compared with 88% a year earlier. Awareness among medium sized employers was also down, from 98% to 94%.

 Commenting, Steve Webb, Director of Policy at Royal London said: ‘Automatic enrolment has been a huge success story, but it is vital that the momentum is maintained. It is worrying that growing numbers of micro and medium sized firms are not fully aware of their duties under the law. There is a risk that this will lead to workers missing out. The Government must sustain publicity around automatic enrolment, especially targeted at employers, if the programme is to continue to be a success’.

Back to Index


Similar News to this Story

PPF marks 20 years of protection in its Annual Report
The Pension Protection Fund (PPF) has published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial p
DC pensions continue to back Net Zero despite ESG backlash
Barnett Waddingham’s latest DC Sustainability Report finds a 34% increase in allocations to funds with a climate target in the growth stage since orig
Chancellors focus on guided retirement for pensions savers
Ahead of the Mansion House speech to be delivered by UK Chancellor Rachel Reeves on the evening of 15 July, Glyn Bradley, Chair of Pensions Board at t

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.