The Pensions Regulator has set out its compliance and enforcement strategy and policy for employers subject to the automatic enrolment duties.
These documents outline the approach the regulator will apply in meeting its statutory objective of maximising compliance with the automatic enrolment duties and associated legislation.
A quick guide has been published to summarise the regulator's approach to compliance and enforcement.
Our aims and objectives
The underlying aim of this strategy is to have in place effective systems to maximise employers' compliance with their duties under the Pensions Act 2008 and to ensure non-compliance is held at an absolute minimum, to safeguard workers ability to save in a pension scheme.
The objectives of the strategy are to:
establish and maintain a 'pro-compliance' culture among employers so that they are aware of and understand their obligations, want to comply with their legal duties and advocate that non-compliance by other employers is not acceptable
maximise deterrence for those who are considering committing a breach by communicating
swiftly detect non-compliance by putting in place effective systems to facilitate whistleblowing, registration verification, the analysis of information and the sharing of intelligence with other agencies
Compliance approach
Our overall compliance approach is focussed on educating and enabling employers to comply with their duties. We are taking steps to prompt you into action to prepare for auto enrolment and reduce the risk of non-compliance which include:
writing to you to notify you of your staging date at 12 months and three months in advance of your staging date
helping the pensions industry provide products and advice that is fit for purpose and supports the aims of automatic enrolment
helping employers understand what questions they should ask of their pension advisers and product providers
making educational products available, like our detailed guidance for large businesses and advisers, and our interactive tools to help smaller employers
providing a customer contact centre to provide information and guidance
making the process of registration simple for employers to minimise the administrative burden
Failure to comply
There are some employers who will fail to comply because they have not understood or have not been able to comply. We will consider the circumstances of each case and, where it is appropriate to do so, we will work with them to get them compliant.
Inevitably, there will be a small number of employees who may have chosen to ignore their responsibilities. We will be tough but fair to non-compliant employers.
We will:
use high-quality intelligence to detect employers who are non-compliant
be risk-based and proportionate by taking timely and appropriate regulatory action where necessary to get them back on track
intervene where we will have the greatest impact and deploy our resources efficiently
ensure sanctions are used fairly and effectively
consider all the relevant circumstances of each case, and ensure that there is a fair review and appeal process
carry out full investigations in appropriate circumstances
Enforcement options
Where employers do not demonstrate a willingness to comply with pensions legislation, we have a variety of enforcement options that we may use at any stage.
The options are:
informal action
instruction by telephone, email, letter and in person
warning letter
gathering information
formal requests for information
inspection powers
statutory notices
penalties
Fixed Penalty Notices
Escalating Penalty Notices
Prohibited Recruitment Conduct Penalty Office
Civil Penalty
statutory powers and orders
power to recover unpaid contributions
Prohibition and Suspension Orders, Appointment of trustees
court action
civil action
criminal prosecution
Compliance and enforcement policy
In our policy, we explain how our information and intelligence unit will detect non-compliance and apply a risk assessment process to prioritise matters that may result in an investigation case or enforcement action.
We explain what happens to cases that are referred to our Information and intelligence unit.
It includes an inspection leaflet and template, a statutory request for information leaflet and template, and a review template.
To view the guide, please click on the link below:
Compliance and enforcement strategy
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