The clock is ticking for thousands of medium sized employers across the UK who have six months to go before their duty to automatically enrol workers into a work-based pension is switched on.
Over the past few weeks, The Pensions Regulator has sent around 6,000 letters to employers alerting them to begin finalising their preparations to meet their duties under automatic enrolment legislation. Thousands more letters calling employers to action will follow between now and Christmas.
Figures released today by The Pensions Regulator show that more than 1.7 million workers have already been automatically enrolled by their employers. More than 2,000 large employers have complied with their automatic enrolment duties and the regulator is stressing that by now medium sized employers should have plans in place to do the same. Leaving preparations too late can risk non compliance and this can come at a cost.
Click here to view the automatic enrolment monthly registration report.
More than 5,000 employers will be subject to their statutory duties concerning automatic enrolment in April next year. They represent the first wave of medium sized employers due to implement automatic enrolment. Hot on their heels will be more than 20,000 employers – with fewer than 250 workers – who will reach their staging date between May and July. The staging date is the date that an employer’s statutory duty is switched on.
Minister for Pensions Steve Webb said: "Employers have already made a major contribution in delivering these landmark reforms. With only six months before medium sized employers enrol their staff the message is clear: act now to ensure you meet your duties.
"Last week we announced changes that will streamline the system and make it easier for employers to meet their duties. Employers should turn to The Pensions Regulator for guidance."
The Pensions Regulator’s Executive Director of Automatic Enrolment Charles Counsell added: ‘The six month countdown for medium sized employers has begun and we are calling them to action. We know many have been working hard to ensure they are ready for their new duties. We are calling on all employers not to be complacent and that is why we have written directly to them – to make sure they know what their duties are, what they should have done by now and what they will need to do.’
The regulator recommends that employers due to stage in April next year should by now have identified a suitable pension provider and software provider as well as any outside help they may need. They should also have started checking which of their workers they will need to automatically enrol and communicating with them about the changes.
In order to ensure they are fully aware of what they need to do to, employers are urged to go to the regulator’s website. The handy timeline planner will help them to tailor their own individual plan. There is also plenty of information about identifying a suitable pension scheme and software provider and assessing and communicating with workers. There is also information about employers’ongoing duties.
Lessons learned from larger employers who have already implemented automatic enrolment show the importance of being certain that your pensions provider can provide what you need and that your payroll systems are compatible – employers should test their systems in advance of their staging date.
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