Auto Enrolment
What is Auto Enrolment?
Pensions Auto Enrolment effects any business in the UK that employs staff, whether it is just 1 person or 1000. Currently all eligible workers are automatically enrolled into a Qualifying Workplace Pension Scheme with mandatory minimum contributions from the employer and the employee. Employers need to understand their duties associated with the law, as they could be potentially time consuming, complex and the penalties severe for non-compliance.
Compliance Requirements for the Employer
Companies are required to do the following:
Access eligibility of all employees
Register with the regulator.
Ensure that their pension schemes comply with all regulations.
Manage the enrolment process for all employees.
Manage and update the opting in and out of employees.
Manage contributions.
Ensure that inducements to opt out are not offered.
Provide regular updates and employee communications.
Re-enrol opted out employees on a regular basis.
Keep accurate records of all the above
Failure to comply
If an employer does not comply, the following consequences will apply: -
Please note that the fines are not minor changes…
After that, it can impose daily fines for Persistent offenders; these depend on the employer’s size. These fines will continue until the company complies.
