The Pensions Regulator (TPR) is to prosecute a Greater Manchester bus firm and its managing director for deliberately not putting staff into a workplace pension.
Stotts Tours (Oldham) Limited is accused of failing to comply with the law on automatic enrolment in respect of 36 members of staff. Managing director Alan Stott is accused of either consenting or conniving in the bus company’s offence, or allowing the offence to be committed by neglect. Stotts Tours (Oldham) and Mr Stott have been summonsed to appear at Brighton Magistrates’ Court on 4 October 2017 where they will face eight charges of wilfully failing to comply with the company’s duties under section 3(2) of the Pensions Act 2008, contrary to section 45 of the Act in the case of Stotts Tours (Oldham) and contrary to section 46 of the Act in the case of Mr Stott. Under section 45 of the Pensions Act 2008, an offence is committed by an employer who wilfully fails to comply with the duty under section 3(2) (automatic enrolment) of the Act – “The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme with effect from the automatic enrolment date." Where an offence under section 45 is committed by a company with the consent or connivance of one of its directors, or is attributable to the director’s neglect, the director is also guilty of the offence by virtue of section 46 of the same Act.
The offences can be tried in a crown court or in a magistrates’ court. In a crown court the maximum sentence is two years’ imprisonment. In a magistrates’ court, the maximum sentence is an unlimited fine.
This is the first time that TPR has launched prosecutions for these offences.
Back to Contents
Automatic enrolment - new and ongoing duties 15 September 2017
By law, on 6 April 2018, all employers are required to increase their contributions into their staff's automatic enrolment pension to at least of 2%
An article by Darren Ryder, Director of Automatic Enrolment, The Pensions Regulator, explains what new businesses need to consider, ongoing duties, the increase in contributions and the importance of compliance.
To date, more than 8.5 million people have been automatically enrolled in a workplace pension by nearly 800,000 employers.
TPR recently published their annual commentary and analysis report, which shows that more than 70% of all new businesses will have staff they will need to put into a workplace pension. This means the majority of new employers will have full automatic enrolment duties and will need to set up a pension for their staff. The estimates demonstrate how automatic enrolment has and will continue to reverse the decline in workplace saving. In 2012, 55% of staff were saving into a workplace pension and by 2016 that figure had increased to 78%. In addition, a recent Mori poll commissioned by DWP also showed 83% of staff are pleased they are saving into a workplace pension and a similar number welcome an increase in contributions. From October 2017, anyone thinking of taking on staff for the first time should start planning for their automatic enrolment responsibilities. As soon as they take on staff they will have workplace pensions duties. Planning for automatic enrolment should be carried out alongside all the other tasks associated with running a business – for example setting up PAYE. If an employer has eligible staff to put into a pension scheme, they will need to identify a provider and they should leave plenty of time to do this. They should also ensure their chosen payroll solution is compatible with their scheme so that staff receive the pensions they are entitled to on time. Start-up businesses
Within five months of taking on staff, employers must complete a declaration of compliance to tell TPR what they have done to meet their duties.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 404 of 516
Made with FlippingBook - Online magazine maker