40,000 companies fined over auto-enrolment failures

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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."

"Eligible workers have a legal right to an employer's pension contribution" she added."The AE system will only work in the long-run if all employers comply with the law, enabling workers to build up long-term savings."

 

This article was written by Hope William-Smith from Professional Pensions and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.