Auto Enrolment is a government lead initiative designed to “increase confidence and participation in work based pension schemes”. It is policed and regulated by the Pensions Regulator and the law on work place pensions has changed so that every employer must comply.
If you employ in the UK then auto enrolment will affect you.
- You must enrol certain staff into a pension scheme
- You must start doing this from your staging date, though you can postpone auto enrolment for up to 3 months
- You must write to your staff to tell them how they have been affected
If you fail to comply with your duties, the Pension Regulator may take enforcement action. The regulator can issue a notice directing you to comply and/or a financial penalty.
Financial penalties start at £400 and can rise to a daily penalty of £5000 for the most serious cases. The regulator aims to collect all penalties issued.