payroll bureaux are now on the front line of assisting their clients to effectively enrol their eligible workers. These days, it’s not the boss, but the client who is tapping on your shoulder asking for a solution for automatic enrolment.
Our compliance work
The end of last year coincided with the deadlines for the thousands of medium employers who staged in the early summer of 2014 to complete their declarations of compliance. At the regulator, as predicted, the number of times the regulator used powers such as fines, and inspections rose significantly. For example, at the end of September 2014, we had issued a total of 177 compliance notices since July 2012 but over 1,000 more were sent out in the final quarter of the year. There are two underlying reasons explaining the increase in use of powers during this quarter. First the fact that more employers have staged, and second, as anticipated, the behaviour of smaller employers is different. There are more who, despite the message to prepare early, leave it too late. Enforcement action starts with statutory notices and is followed by penalty notices. Further non compliance may result in court action. In the majority of cases, employers who have received a statutory notice from the regulator are prompted to follow the instructions given to them and take action to meet their duties to their workers. It’s worth sharing with you one piece of information contained in our latest compliance and enforcement bulletin, which details our use of powers and shares lessons learnt to help other employers and their advisers. Employers must tell us how they have complied with their duties by providing certain information through the online declaration of compliance. One of the main reasons employers were issued a compliance notice was because they had failed to complete a declaration within five months of their staging date. Using the systems and data available to us we have been proactively checking the accuracy of information submitted by employers when they declare compliance. As a result of this, we have been selecting employers for further engagement, which has included visiting premises to check records and interviewing key staff. More than 1.3 million employers need to comply with their new workplace pensions over the next three years and declare compliance with us. That is why ensuring the accuracy of declarations made by employers will continue to be a focus for the regulator. Proactive compliance work
The impact of a letter from the regulator
One final reminder, be ready for questions from clients who receive a letter from The Pensions Regulator. The roll out of automatic enrolment has so far been a success and the letter we are sending to all small and micros over the coming months, which started from the end of January, will make clear when their duties begin, enabling them to plan ahead. The message for business advisers is clear: be prepared for clients to approach you about automatic enrolment and let your clients know to look out for a letter from The Pensions Regulator in the coming months.
The Pensions Regulator publishes response to scheme list consultation
6 March 2015
CIPP Policy News Journal
08/04/2015, Page 361 of 521
Made with FlippingBook - Online magazine maker