More than one in ten employers miss deadline for Auto Enrolment

Some 13% of employers start preparing for auto-enrolment after their staging date has passed, according to research

Analysis of NOW: Pensions’ client base found 19% completed their application in the month before their staging date, while 30% took action six months or more ahead of theirs.

Some 16% started their planning three to six months before their staging date while 6% did so between two and three months ahead. Another 16% took action between one and two months in advance of their staging date.

According to The Pensions Regulator (TPR), there are 1.3m SMEs preparing for auto-enrolment and one in 10 do not know how to choose a pension scheme or think it will be too difficult.

Morten Nilsson, CEO of NOW: Pensions said:

So far this year a good number of employers are planning ahead, but those coming on board early are typically receiving support either from intermediaries or payroll providers. Many could face fines if they are late either through lack of knowledge or because they believe their current provider will accept them, which they may not.

 

The TPR recently updated its guide and online tools to help SMEs find a pension scheme and it now includes a list of master trust pension schemes open to employers of all sizes “which have been independently reviewed to prove they are administered to a high standard”.

Lesley Titcomb, chief executive at TPR said

Research suggested one in five (290,000) employers would not seek advice when choosing a pensions scheme. I strongly believe that the vast majority of the 1.3m small and micro employers approaching automatic enrolment want to do the right thing. However, many will choose not to seek advice and will need additional support to meet their duties.

Petaurum Solutions’ Comment

Complying with complex Auto Enrolment obligations can be a daunting prospect for many small and micro-sized business.  Choosing a cost effective, long-term implementation solution is critical for these businesses to ensure they do not become swamped with the processing requirements and responsibilities that Auto Enrolment can bring.  Therefore, for businesses considering their solution, focus should not only be on the pension scheme, but also on how it will be administered, methods to communicate, impacts on systems and data collection processes along with any HR and Legal changes may you need to make.

Our Defaqto 5* quality Carey Master Trust Pension Scheme, 
comes with best in class assessment and communication software and is part of our SME specific, competitively priced end-to-end solution that will take care of the above, leaving you free to manage your business safe in the knowledge that your Auto Enrolment obligations are in professional hands.  Want to know more?  Then feel free to download our info pack here, or contact us to secure your PAE future.

 

This information is intended as a general overview and discussion of the subjects dealt with. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal, HR or benefits advice in any specific situation. Petaurum Solutions is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.

 

Submit a Comment

Your email address will not be published.