Now’s the time to start making use of auto-enrolment software to automate the process and take the pressure off if you haven’t done this already. Why? Because The Pensions Regulator has just announced that short-notice inspections are now being carried out to find employers who are neglecting their duties where automatic enrolment of pensions is concerned.
It is mandatory for companies to take part in these inspections and obstructing an inspector or failure to provide information when required are both criminal offences, which could result in fines or court action.
The inspections start this week (May 15th) and will continue throughout the summer, with data being used to find specific employers all over the country who are suspected of breaking the law. This includes those failing to put staff into pension schemes or who make no or incorrect contributions.
“We know the vast majority of employers are doing the right thing for their staff, however, there are a small minority who persistently ignore their responsibilities. They can expect a knock at the door from us and enforcement action,” Darren Ryder, director of automatic enrolment with the watchdog, said.
The minimum contributions paid into automatic enrolment workplace pension schemes rose on April 6th this year and it is the employer’s responsibility to ensure the increase has been implemented.
Legally, a total minimum amount of contributions must be paid into the scheme and employers have to make at least the minimum contribution towards this, with the member of staff making up the difference.