The Pensions Regulator (TPR) are warning firms reaching their staging date that they are ill advised to ignore the ‘workplace pension’.
The next two years will be the busiest period, reaching small and micro employers. Even a hairdresser, an architect or people who employ a personal care assistant will have certain legal duties to offer a workplace pension to your employees. Non-compliance can lead to fines of £500 a day for employers of 5-49, £50 per day for 1-4 employees.
26,000 compliance notices were issued between July & September 2016, and although only 5% of those progressed to an escalating penalty notice it’s still 1300 over a three month period. *
Pensions Minister Richard Harrington has commented “Automatic enrolment is a great success. So far, more than 250,000 employers are helping over 6.7 million people save into a workplace pension. The duty is being extended to all UK employers and they must ensure they enrol their staff into a scheme by the deadline for their firm, it’s the law.”
Take action sooner rather than later as it’s not going away and you could be left with a lack of choice in pension schemes and a lengthy lead time for set-up. Seeking specialist advice to ensure you are on the most cost- effective and appropriate scheme long term is the best option.
Clarke Nicklin Financial Planning have advised many companies on Auto Enrolment, and as part of the service offer a pension and financial planning review to both employers and employees, to clarify all options and implications, whilst identifying the best options which could result in significant cost savings or benefits.
We would be delighted to hold a free initial, no obligation meeting. Call 0161 495 4700 and ask for Kath, or email katha@clarkenicklin.co.uk.
Source *http://www.thepensionsregulator.gov.uk/docs/automatic-enrolment-use-of-powers-sept-2016.pdf
