40,000 companies fined over auto-enrolment failures
This communication is for employers only. It mustn’t be distributed to, or relied on by, customers
More than 40,000 companies were issued fines for failing to meet auto-enrolment (AE) obligations in 2018, The Pensions Regulator (TPR) has confirmed.
In its response to a Freedom of Information request to New Model Adviser, the regulator said 40,301 companies were hit with compliance penalties during the year, with a further 41,057 avoiding fines after making recommended amendments.
The regulator currently issues penalties when companies have failed to correct issues flagged in preliminary compliance warnings.
Penalties can cover a range of non-compliance issues including failing to enrol or re-enrol employees by given deadlines, and not paying contributions on time.
So far this year, 33,529 companies handed warnings have made the necessary changes to their AE obligations to avoid a fine.
A total of 20,298 employers have been handed penalities for AE failures between 1 January and 30 September 2019, however.Aegon head of pensions Kate Smith said the regulator is taking a"forensic approach" to dealing with non-compliant companies.
She said:"The volume of fines being issued indicates TPR is taking a tough stance on non-compliance and although the vast majority of employers are doing the right thing, there continues to be this small minority failing to take AE seriously."