The Pensions Regulator (TPR) is warning firms reaching their staging date that they are ill advised to ignore the ‘workplace pension’.
Pensions Minister Richard Harrington has commented “Automatic enrolment is a great success. So far, more than 250,000 employers are helping over 6.7 million people save into a workplace pension. The duty is being extended to all UK employers and they must ensure they enrol their staff into a scheme by the deadline for their firm, it’s the law.”
26,000 compliance notices were issued between July & September 2016 and, although only 5% of those progressed to an escalating penalty notice, it’s still 1300 over a three month period. *
Cheadle Royal based Clarke Nicklin Financial Planning have advised many companies on Auto Enrolment. As part of the service they offer a pension and financial planning review to both employers and employees.
Scott Herbert, partner and independent financial advisor, explains: “It is important to clarify all options and implications, for both the employer and the employee. Identifying the best options could result in significant cost savings or benefits.
“The next two years of staging dates will be the busiest period, reaching small and micro employers.
“Even a hairdresser, an architect or someone who employs a personal care assistant will have certain legal duties to offer a workplace pension to their employees. Non-compliance can lead to fines of £500 a day for employers of 5-49, £50 per day for 1-4 employees.”
Scott’s advice is to take action sooner rather than later: “It’s not going to go away. Employers should act now or risk being could be left with a lack of choice in pension schemes and a lengthy lead time for set-up.
“Seeking specialist advice to ensure you are on the most cost- effective and appropriate scheme long term is the best option.”
Clarke Nicklin Financial Planning offer a free initial, no obligation meeting.
Call 0161 495 4700 and ask for Kath, or email kath
Source * The Pensions Regulator