The Pensions Regulator (TPR) has announced how it has been flexing its muscles under the Pensions Act 2004 for non-compliance by employers with their duties under the workplace pensions Auto-Enrolment regulations. This covers the period from July 2012 up to 31st December 2014.
Full details are shown in the attachment below, as taken from the TPR website.
Don’t get caught out! We can help you with your Auto-Enrolment duties. Please phone Bernard Macken on 0113 202 9529 or e-mail me at bfm@pipllp.co.uk . Also, please visit our website at www.pipllp.co.uk #BeyondBetter
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Wednesday, 18 February 2015
It’s happening - Employer fines for Auto-Enrolment non-compliance!
The Pensions Regulator (TPR) issued 166 penalty notices to firms breaking Auto-Enrolment (A-E) regulations in the final quarter of 2014, an increase from just three fines in the previous quarter.
TPR’s latest quarterly update on its investigations into A-E reveals it served 166 firms with £400 fixed penalties for failing to comply with an unpaid contributions notice or a compliance notice in the last three mo...nths of the year.
TPR’s latest quarterly update on its investigations into A-E reveals it served 166 firms with £400 fixed penalties for failing to comply with an unpaid contributions notice or a compliance notice in the last three mo...nths of the year.
The fines totalled £66,400 and compare to three penalties in the third quarter of 2014 – the first TPR had issued for A-E non-compliance.
There was also a surge in the number of compliance notices issued, with TPR handing out 1,139 in the final quarter of the year, compared to 163 in the third quarter.
Approximately 30,000 medium-sized employers who had staging dates between April and July reached their deadline to complete their declaration of compliance by the start of December 2014.
TPR director of auto-enrolment Charles Counsell says: “My message to all employers is that failing to declare within five months of your staging date means you risk being fined, which is why we recommend you start your Auto-Enrolment planning and preparation 12 months before staging.
It appears some medium employers waited for a prompt from the regulator before completing their auto-enrolment duties.”
TPR says that with A-E being rolled out to large numbers of small businesses in the coming months, it expects to see a further increase in the number of firms which leave it too late or do not comply with the rules.
Don’t get caught out! We can help. Please phone Bernard Macken on 0113 202 9529 or e-mail bfm@pipllp.co.uk Also, please visit our website at www.pipllp.co.uk . #BeyondBetter
There was also a surge in the number of compliance notices issued, with TPR handing out 1,139 in the final quarter of the year, compared to 163 in the third quarter.
Approximately 30,000 medium-sized employers who had staging dates between April and July reached their deadline to complete their declaration of compliance by the start of December 2014.
TPR director of auto-enrolment Charles Counsell says: “My message to all employers is that failing to declare within five months of your staging date means you risk being fined, which is why we recommend you start your Auto-Enrolment planning and preparation 12 months before staging.
It appears some medium employers waited for a prompt from the regulator before completing their auto-enrolment duties.”
TPR says that with A-E being rolled out to large numbers of small businesses in the coming months, it expects to see a further increase in the number of firms which leave it too late or do not comply with the rules.
Don’t get caught out! We can help. Please phone Bernard Macken on 0113 202 9529 or e-mail bfm@pipllp.co.uk Also, please visit our website at www.pipllp.co.uk . #BeyondBetter
Everyone wants to go to Heaven, but ……….
Whilst it is good news that the UK population is living longer, the dark underbelly is that increasing numbers of the elderly are in poor health. This puts a strain on their retirement income as the costs of care mount. So whilst Auto-Enrolment means that more people are saving in a workplace pension than ever, the demands on income in retirement are also increasing.
With this in mind, it is difficult to argue with Phil Loney, CEO of Royal London Group, when he said:
“The Turner Commission took a long term view of pension reform and created a political consensus over what should be done to get the UK population saving for retirement. Those changes are being successfully implemented. However the revolution brought about by
the “freedoms” announced in the Budget means that a similar long term approach must be taken over the ways people can access that pension and convert it into an income. At present, policy around retirement planning is becoming too short-term and “political”. There is nothing to stop a future Government from reversing some of the recent policy decisions on which we are building. This kind of uncertainty can only act as a disincentive for people to save for the future. That is why we are calling for a Commission to look at all aspects of later-life financial provision, and to provide a basis for a lasting political consensus.
The Government has recognized that the retirement income options that people will face are now very complex. That is why they guaranteed a “Guidance” session for all approaching retirement. But we know that’s not enough. The complexities of tax, means testing and
inheritance planning mean many people will need regulated financial advice to get the best from these reforms. For most people this advice is unavailable or unaffordable. There needs to be a fresh look at how we can make financial advice more affordable and available for the wider general public. Access to financial advice should not be a privilege that is only affordable for the well off.
Increasingly the ageing population will need long term or residential care. We have yet to crack the problem of how this care is funded. With increasing age people become vulnerable and cannot take their own financial decisions safely. The number of people suffering from
Alzheimer’s is set to increase from 850,000 today to 2 million by 2051. Regulators are alert to the issue of vulnerable consumers but so far with little action.
The Commission we are calling for could look at these issues perhaps recommending that whenever someone makes a Will they must not only appoint Executors but also appoint someone with Power of Attorney over their affairs in the case of mental incapacity. The only way we can resolve issues such as advice and long-term care is to consider them away from day to day politics. These issues are long term and many of the required solutions may be considered politically unpopular.
We are aware that others have been calling for a pension commission for similar reasons but we believe it’s essential that all the issues impacting the financing of later life are considered together, not just pensions. Only then can a coherent, sustainable strategy be developed which policymakers and industry can deliver together and that will enable the British public to save
with confidence for their long term futures.”
Increasingly, it will become the case that assets built up over a lifetime, such as the home and other investments, will be required to fund people’s later years, rather than being viewed as an inheritance for future generations. However, good forward planning can alleviate some of the problems.
PIP can help. Phone Bernard Macken on 0113 202 9529, or e-mail him on bfm@pipllp.co.uk
Also, please visit our website at www.pipllp.co.uk #BeyondBetter
With this in mind, it is difficult to argue with Phil Loney, CEO of Royal London Group, when he said:
“The Turner Commission took a long term view of pension reform and created a political consensus over what should be done to get the UK population saving for retirement. Those changes are being successfully implemented. However the revolution brought about by
the “freedoms” announced in the Budget means that a similar long term approach must be taken over the ways people can access that pension and convert it into an income. At present, policy around retirement planning is becoming too short-term and “political”. There is nothing to stop a future Government from reversing some of the recent policy decisions on which we are building. This kind of uncertainty can only act as a disincentive for people to save for the future. That is why we are calling for a Commission to look at all aspects of later-life financial provision, and to provide a basis for a lasting political consensus.
The Government has recognized that the retirement income options that people will face are now very complex. That is why they guaranteed a “Guidance” session for all approaching retirement. But we know that’s not enough. The complexities of tax, means testing and
inheritance planning mean many people will need regulated financial advice to get the best from these reforms. For most people this advice is unavailable or unaffordable. There needs to be a fresh look at how we can make financial advice more affordable and available for the wider general public. Access to financial advice should not be a privilege that is only affordable for the well off.
Increasingly the ageing population will need long term or residential care. We have yet to crack the problem of how this care is funded. With increasing age people become vulnerable and cannot take their own financial decisions safely. The number of people suffering from
Alzheimer’s is set to increase from 850,000 today to 2 million by 2051. Regulators are alert to the issue of vulnerable consumers but so far with little action.
The Commission we are calling for could look at these issues perhaps recommending that whenever someone makes a Will they must not only appoint Executors but also appoint someone with Power of Attorney over their affairs in the case of mental incapacity. The only way we can resolve issues such as advice and long-term care is to consider them away from day to day politics. These issues are long term and many of the required solutions may be considered politically unpopular.
We are aware that others have been calling for a pension commission for similar reasons but we believe it’s essential that all the issues impacting the financing of later life are considered together, not just pensions. Only then can a coherent, sustainable strategy be developed which policymakers and industry can deliver together and that will enable the British public to save
with confidence for their long term futures.”
Increasingly, it will become the case that assets built up over a lifetime, such as the home and other investments, will be required to fund people’s later years, rather than being viewed as an inheritance for future generations. However, good forward planning can alleviate some of the problems.
PIP can help. Phone Bernard Macken on 0113 202 9529, or e-mail him on bfm@pipllp.co.uk
Also, please visit our website at www.pipllp.co.uk #BeyondBetter
Friday, 21 November 2014
How many companies will need help with automatic enrolment?
| TPR(The Pensions Regulator) says: "Our research has revealed that at least 78% of small businesses will be relying on their advisers for support to ensure they comply with changes to workplace pensions law. And with tens of thousands of small and micro employers needing to be ready by the summer of 2015 (see chart on right), you can expect to be approached by your clients very soon." We are here to help you. Please telephone Bernard Macken on 0113 202 9520, or e-mail him on bfm@pipllp.co.uk Please visit our website www.pipllp.co.uk. |
ACS (Association of Convenience Stores) warning on Auto- Enrolment pensions for smaller retailers:
The Auto-Enrolment pension scheme legislation could prove “a
significant operational and financial burden on small retailers,” the
ACS has warned.
Under the scheme, which started being rolled out by the government in 2012, all staff must be enrolled in a pension when starting employment unless. Many convenience stores will have to start enrolling their staff from June 2015.
Employers will be required to pay 1% of an employee’s annual earnings into the pension scheme. This rises to 3% by 2018.
“Retailers are facing increased costs in many areas of their business, including above-inflation increases in the minimum wage and changes to statutory sick pay regulations,” said ACS CEO James Lowman.
“Auto enrolment has the potential to be a significant operational and financial burden on small retailers, and we are keen to work with the Department of Work and Pensions to minimise the costs of implementation while ensuring that all retailers are aware of what is required.”
In its submission to the Work and Pensions Select Committee, the ACS said nearly half of micro employers did not know the exact date when they needed to comply, leaving them at risk of financial penalties because of non-compliance, and disproportionately affecting the smallest businesses in the convenience sector.
It also said the high administrative cost of dealing with very small pension contributors meant pension providers were more likely to reject smaller employers.
For the original article, go to: http://www.thegrocer.co.uk/people/people-news/acs-warning-on-auto-enrolment-pensions-for-smaller-retailers/373249.article
The clear message is Don’t get caught out. Act sooner rather than later.
We can help you fulfill your Auto-Enrolment legal duties. Please phone Bernard Macken on 0113 202 9529, or e-mail bfm@pipllp.co.uk Please also visit our website www.pipllp.co.uk
Under the scheme, which started being rolled out by the government in 2012, all staff must be enrolled in a pension when starting employment unless. Many convenience stores will have to start enrolling their staff from June 2015.
Employers will be required to pay 1% of an employee’s annual earnings into the pension scheme. This rises to 3% by 2018.
“Retailers are facing increased costs in many areas of their business, including above-inflation increases in the minimum wage and changes to statutory sick pay regulations,” said ACS CEO James Lowman.
“Auto enrolment has the potential to be a significant operational and financial burden on small retailers, and we are keen to work with the Department of Work and Pensions to minimise the costs of implementation while ensuring that all retailers are aware of what is required.”
In its submission to the Work and Pensions Select Committee, the ACS said nearly half of micro employers did not know the exact date when they needed to comply, leaving them at risk of financial penalties because of non-compliance, and disproportionately affecting the smallest businesses in the convenience sector.
It also said the high administrative cost of dealing with very small pension contributors meant pension providers were more likely to reject smaller employers.
For the original article, go to: http://www.thegrocer.co.uk/people/people-news/acs-warning-on-auto-enrolment-pensions-for-smaller-retailers/373249.article
The clear message is Don’t get caught out. Act sooner rather than later.
We can help you fulfill your Auto-Enrolment legal duties. Please phone Bernard Macken on 0113 202 9529, or e-mail bfm@pipllp.co.uk Please also visit our website www.pipllp.co.uk
From The Pensions Regulator (TPR), 30th October 2014: “Enforcement Activities Increase"
Our latest figures on Automatic-Enrolment compliance and enforcement
show an increase in the number of times we have exercised our powers
against employers. This includes the first use of fines relating to Automatic-Enrolment.
The quarterly report includes details on particular areas of non-compliance and highlights common misunderstandings by employers about their duties.
As the number of employers staging rises significantly, we expect to see an increase in how often we need to use our statutory powers. This is based on our research among medium, small and micro employers, which shows that these employers are more likely to leave Automatic-Enrolment preparations until closer to their staging date. We believe that this is likely to lead to more employers being non-compliant with their duties.
Advertising targets small and micro businesses:
As Automatic-Enrolment celebrated its second birthday, we launched a major nationwide media campaign aimed at raising awareness among smaller employers and their advisers. Look out for our advertisements in the press, online and on radio.”
Don’t get caught out. We can help you fulfil your Auto-Enrolment legal duties. Please phone Bernard Macken on 0113 202 9529, or e-mail bfm@pipllp.co.uk . Please also visit our website www.pipllp.co.uk #BeyondBetter
The quarterly report includes details on particular areas of non-compliance and highlights common misunderstandings by employers about their duties.
As the number of employers staging rises significantly, we expect to see an increase in how often we need to use our statutory powers. This is based on our research among medium, small and micro employers, which shows that these employers are more likely to leave Automatic-Enrolment preparations until closer to their staging date. We believe that this is likely to lead to more employers being non-compliant with their duties.
Advertising targets small and micro businesses:
As Automatic-Enrolment celebrated its second birthday, we launched a major nationwide media campaign aimed at raising awareness among smaller employers and their advisers. Look out for our advertisements in the press, online and on radio.”
Don’t get caught out. We can help you fulfil your Auto-Enrolment legal duties. Please phone Bernard Macken on 0113 202 9529, or e-mail bfm@pipllp.co.uk . Please also visit our website www.pipllp.co.uk #BeyondBetter
First Auto-Enrolment Fines Handed Out
The Pensions Regulator’s (TPR’s) latest
quarterly update on its investigations into Auto-Enrolment confirms that
it has served three firms with £400 fixed penalties for failing to
comply with an unpaid contributions notice or a compliance notice.
It can only get worse because, whilst more than 33,000 large and medium sized employers have already begun auto-enrolling staff, there are a further 1.25 million due to hit their staging dates over the next three years. There is a huge capacity crunch looming, as there will be an insufficient number of advisory firms available to help these employers comply with their legal duties. The message has to be, act early before the tsunami hits.
TPR executive director for Automatic-Enrolment Charles Counsell says:
“As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all. This type of non-compliance is not acceptable. We expect to see the number of times we need to use our powers increase.
The regulator has a range of powers to tackle non-compliance including serving fixed penalty notices and escalating daily penalties notices.”
We can help. Please phone Bernard Macken on 0113 202 9529 or e-mail bfm@pipllp.co.uk. Please visit our website www.pipllp.co.uk
It can only get worse because, whilst more than 33,000 large and medium sized employers have already begun auto-enrolling staff, there are a further 1.25 million due to hit their staging dates over the next three years. There is a huge capacity crunch looming, as there will be an insufficient number of advisory firms available to help these employers comply with their legal duties. The message has to be, act early before the tsunami hits.
TPR executive director for Automatic-Enrolment Charles Counsell says:
“As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all. This type of non-compliance is not acceptable. We expect to see the number of times we need to use our powers increase.
The regulator has a range of powers to tackle non-compliance including serving fixed penalty notices and escalating daily penalties notices.”
We can help. Please phone Bernard Macken on 0113 202 9529 or e-mail bfm@pipllp.co.uk. Please visit our website www.pipllp.co.uk
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