The Pensions Regulator (TPR) is targeting “law-breaking” employers with new compliance checks up and down the country.
In a notice published today, 15 May, the regulator said it is using data to pinpoint specific employers that are failing to enrol staff into a pension scheme or who make incorrect, or no, pension contributions.
The mandatory inspections will start this week and continue over the summer, and non-compliance could result in fines or court action, the regulator warned.
TPR director of automatic enrolment, Darren Ryder, said: “TPR is increasingly led by our data and intelligence streams which enable us to detect potential non-compliance and take swift action against individual employers. This allows us to target our resources in a very focused way as part of our role to protect pension savers.
“We know the vast majority of employers are doing the right thing for their staff, however there are a small minority who persistently ignore their responsibilities. They can expect a knock at the door from us and enforcement action.”
In addition, the regulator said it will directly contact employers suspected of non-compliance by phone, in order to ensure they are fully complying.
Commenting, Barnett Waddingham partner, Mark Futcher, said: “It is good to see TPR being more proactive in ensuring employers are complying with their duties, and they should be strict on those who wilfully don’t comply.
“However, auto-enrolment is still fairly complicated and often employers will break the rules inadvertently and this group of employers should be given time to get their affairs in order and make good any employee shortfall.”
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