So you complied with your auto enrolment staging date, set up a workplace pension scheme and you think your duties are over? Sorry, think again!
Establishing a qualifying scheme is only the start, we come across many examples of unintentional breaches that could lead to bad outcomes for the members and a fine for the employer. Thousands of compliance notices and fixed penalty notices have been issued by the Pensions Regulator and there is no sign of this trend reducing.
There are many traps you can fall into;
- Payroll incorrectly configured – did you know there are several ways to apply tax relief and contributions?
- Is pensionable salary correctly configured?
- Are you picking up staff that pass the eligibility age or earnings criteria?
- You have completed your on line declaration but what about the annual certificate of compliance?
- Is your statutory new hire letter up to date?
- Are you issuing your letters within the specified time scales?
- When are your re-enrolment duties due?
- Are your records robust enough to withstand a visit by The Pensions Regulator?
Unwittingly falling into these traps can be very expensive with fines of up to £50,000 plus interest.
“We now have so many rules and regulations that everyone is guilty of some violation”