The Pensions Regulator is the Government body chosen to regulate Employers’ compliance with the new auto-enrolment rules. The pensions and financial services industry has been used to what is widely accepted worldwide as being the highest level of consumer protection regulation.
The UK financial services regulatory approach style is to be used for auto-enrolment – after all, this is about a financial investment that will affect UK Workers for their whole lives: their pension up to and throughout their retirement.
Breaches of the rules by Employers
The initial fine for non-compliance can be £400, if a breach of rules is judged. However, non-compliance, following an initial breach, will then range from a daily rate fine of £50 up to £10,000 (this is typed correctly, such a fine would be daily!), dependent upon how many Staff that Employer has in its workforce.
Clearly, the risk of not getting things right, as with all investments and financial services is, in the 21st Century, a risk not worth taking!
All employers must keep auditable records that prove (for every pay period):
- all Staff have been assessed at every single payroll period (be it weekly or monthly) as to whether they are Eligible Jobholders at that point in time;
- all Staff have been assessed at every single payroll period (be it weekly or monthly) as to whether they are Entitled Workers at that point in time;
- what action was necessary and what action was taken after each assessment payroll period, by way of auditable record, for each category of Staff: Eligible Jobholders, Non-eligible Jobholders and Entitled Workers;
The creation and maintenance of the above for each and every pay period is a task that can be met with the use of our specialist service, developed specifically to meet the compliance requirements of The Pensions Regulator and its rules for Auto-enrolment.