The Pension Regulator publishes new compliance and enforcement bulletin

TPR is warning employers to ensure they are complying with their ongoing automatic enrolment duties after inspections carried out earlier this year found a number of errors.

The alert to employers comes as TPR publish its latest compliance and enforcement bulletin, showing how many times TPR has used its automatic enrolment and frontline regulation powers between January and June this year (2022).

Employers are being warned to ensure they do not skip important steps in complying with their ongoing duties and to consult TPR’s online information. Read more in the TPR latest press release.

While the inspected firms successfully enrolled eligible staff into a pension and made contributions, administrative errors with their ongoing pensions duties put staff at risk of not receiving the pensions due.

The firms, which are across the transport, hospitality, finance and retail sectors, have now corrected or are working to correct errors, including making backdated contributions.

TPR’s Director of Automatic Enrolment Mel Charles said: “The vast majority of employers are successfully meeting their automatic enrolment duties, however administrative mistakes can put staff at risk of missing out on their pensions and employers at risk of unintended non-compliance.

“While the errors we have found are technical in nature, these types of oversights can indicate broader non-compliance issues.

“Correcting these mistakes can be costly for employers because as well as needing to make backdated payments for staff receiving incorrect contributions, they can also lead to financial penalty.”

Key errors which can lead to employers needing to make costly backdated contributions include using incorrect earnings thresholds. Employers should ensure they consult TPR guidance on this. Employers should also ensure they check government guidance on maternity pay as miscalculating this can impact pensions contributions.

Mr Charles also highlighted that when completing re-enrolment, which employers must carry out every three years, they should check their systems and processes are up to date and running smoothly.

PAYadvice.UK 26/9/2022

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