Pensions Expert has reported that according to investment platform Hargreaves Lansdown, the government should force employers to match voluntary pension contributions made above auto-enrolment minimums.
“The reality is that contributions of 8 per cent of earnings will not deliver an adequate income for a median earner”, said Hargreaves Lansdown – and opposing increasing the 8 per cent minimum rate, also said that the proposal would incentivise "further saving" for individuals that want it.
From 6 April 2019, the total minimum contribution including employer and employee payments must be no less than 8% of qualifying earnings.
Organisations must pay a minimum of 3%, however it can choose to pay more than the minimum contribution if it wishes. There are employers out there who cover the whole 8% so there are some employees, who don’t have to contribute to their workplace pension at all. However what Hargreaves Lansdown are advocating is that if an employee contributes more than the minimum 5%, then the employer should be forced to at least match it. “Our position is that the bedrock that you get from auto-enrolment should see most people in a pretty decent place when they come to retirement,” said senior analyst at Hargreaves, Nathan Long . “If there is still need to provide any further incentive then it should be to offer matching on top.”
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Law breaking employers targeted in new round of pension compliance checks 16 May 2019
In the coming weeks, The Pensions Regulator (TPR) will be targeting its new wave of compliance checks at employers across the UK who are suspected to be non-compliant with their automatic enrolment duties.
Employers are being warned that if they are breaking the law, they may be inspected which could lead to financial penalty or court action. TPR’s Director of Automatic Enrolment, Darren Ryder, said:
“We know that most 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.”
The short-notice inspections started this week in Edinburgh and will continue over the summer across the UK, as part of an ongoing nationwide enforcement campaign to ensure that employers are meeting their workplace pension responsibilities correctly.
TPR is using data to pinpoint specific employers up and down the country who are suspected of breaking the law, including those who fail to put staff into a pension scheme or who make no, or incorrect, pension contributions.
It is mandatory for employers to take part in the inspections – obstruction of an inspector and failing to provide information when required to do so are criminal offences. Non-compliance could also result in fines or court action
If you have clients, it is important that you know exactly what they need to do to meet their ongoing duties, and that their records are kept up to date.
TPR has information and guidance on your ongoing duties to help you.
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Missing XPO workers' pension contributions 24 May 2019
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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