Figures released by The Pensions Regulator show that more than 1.7 million workers have already been automatically enrolled by their employers. More than 2,000 large employers have complied with their automatic enrolment duties and the regulator is stressing that by now medium sized employers should have plans in place to do the same. Leaving preparations too late can risk non-compliance and this can come at a cost.
Go to research and analysis to view the automatic enrolment monthly registration report .
Over the past few weeks, The Pensions Regulator has sent around 6,000 letters to employers alerting them to begin finalising their preparations to meet their duties under automatic enrolment legislation. Thousands more letters calling employers to action will follow between now and Christmas. More than 5,000 employers will be subject to their statutory duties concerning automatic enrolment in April next year. They represent the first wave of medium sized employers due to implement automatic enrolment. Hot on their heels will be more than 20,000 employers – with fewer than 250 workers – who will reach their staging date between May and July. The staging date is the date that an employer’s statutory duty is switched on. The regulator recommends that employers due to stage in April next year should by now have identified a suitable pension provider and software provider as well as any outside help they may need. They should also have started checking which of their workers they will need to automatically enrol and communicating with them about the changes. In order to ensure they are fully aware of what they need to do to, employers are urged to go to the regulator’s website. The handy timeline planner will help them to tailor their own individual plan. There is also plenty of information about identifying a suitable pension scheme and software provider and assessing and communicating with workers. There is also information about employers’ ongoing duties. Lessons learned from larger employers who have already implemented automatic enrolment show the importance of being certain that your pensions provider can provide what you need and that your payroll systems are compatible – employers should test their systems in advance of their staging date. The National Association of Pension Funds (NAPF) has said that the next government must start raising automatic enrolment rates towards 12 to 15 per cent to manage expectations of savers. Professional Pensions has reported that in her keynote speech to NAPF conference last week, chief executive Segars applauded the "green shoots of pension recovery" triggered by the successful introduction of automatic enrolment - but outlined low contribution rates as a major outstanding issue for the industry. She said: "There aren't many of us who think that the 8% contribution is enough to deliver a decent pension. It's a good start and certainly better than zero, which is the reality for too many today. "But now we are going to have to brave up to this issue, as 12% or 15% are more commonly seen as being the right kinds of benchmarks. We need to start managing expectations now - and set the trajectory so it is a gradual increase. Follow this link to read TPR's full press release . NAPF calls for automatic enrolment contribution increases 22 October 2013
CIPP Policy News Journal
16/04/2014, Page 395 of 519
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