A press release by The Pensions Regulator published on 26th September has warned employers that they must comply with their automatic enrolment duties, after inspections found several errors.
These detailed inspections covered 20 large employers with a total of nearly 1.5 million staff. It was discovered that whilst the employers successfully enrolled eligible staff and made contributions, many technical errors were highlighted, such as incorrect calculation of contributions (eg. using the wrong earning thresholds) and errors in communications to workers. Employers are, therefore, expected to make corrections to these errors, including payment of backdated contributions, and potentially pay financial penalties.
The Pensions Regulator warns employers not to miss crucial steps when managing their workplace pension and signposts their online information, which highlights the key tasks which must be carried out every time staff are paid. The press release reminds employers that compliance with automatic enrolment duties goes further than simply enrolling staff and paying contributions. Employers must always ensure:
Employers should ensure their workplace pension is compliant, that contributions are correct, and they should pay attention to their duties around the three-yearly re-enrolment date. To find out how we can help you achieve this, click here.