The minimum contribution levels will rise again on 6 April 2019, with the employer paying a minimum of 3% towards the pension, and the total minimum contribution reaching 8% - with staff making up the difference.
It is important that staff know about the changes, not only to appreciate the benefit it will bring but to minimise queries to the payroll department when their pay is less than expected. Why not let them know about the 2019 changes at the same time.
The Pensions Regulator has updated their letter template for increases in contributions, in order to help employers communicate the increases to their staff.
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Healthcare company admits providing false information about staff workplace pensions 9 March 2018
A healthcare company and its managing director have pleaded guilty to misleading The Pensions Regulator about providing their staff with a workplace pension and have also admitted to wilfully failing to comply with their automatic enrolment duties.
The Pensions Regulator (TPR) has secured their first successful prosecution for the offence of knowingly or recklessly providing false or misleading information
On 22 March 2016, Sheila Aluko submitted a declaration of compliance to TPR claiming that the employer had complied with its duties. In fact, the employer had not completed the setting up of a pension scheme, had not automatically enrolled any staff and had not written to its staff to tell them about automatic enrolment, as it was legally bound to do. No pension contributions had been paid.
Later the employer began deducting pension contributions from the wages of some workers but kept them in the company’s bank account and did not pay them into a pension scheme for more than eight months.
It was only after a whistleblower raised the alarm – and TPR had executed a search warrant at Crest Healthcare’s offices and interviewed Sheila Aluko under caution – that the pension scheme was set up and the contributions were paid in. Crest Healthcare and Sheila Aluko each pleaded guilty to one charge of knowingly or recklessly providing false or misleading information to TPR and two charges of wilfully failing to comply with their automatic enrolment duties when they appeared at Brighton Magistrates’ Court on 7 March. The case was adjourned for sentencing until 15 May.
Darren Ryder, TPR’s Director of Automatic Enrolment, said:
“While the majority of employers are doing the right thing, this case sends a clear message that it is unacceptable to dodge your pension responsibilities – and that we will take action against those who try to.”
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The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 421 of 516
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