Guest comment: Ensuring employer compliance

We’re warning employers to ensure they do not skip important steps in complying with their ongoing duties and to consult TPR’s online information.

Earlier this year we carried out a series of in-depth compliance inspections of more than 20 large employers across the UK.

The inspections highlighted a number of common errors employers are making. While the inspected firms successfully enrolled eligible staff into a pension and made contributions, administrative errors with their ongoing duties put staff at risk of not receiving the pensions they are 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.

Most employers are 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 noncompliance.

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.

While the errors, which are in respect of calculating pensions contributions and communications to staff, are technical in nature – these types of oversights can indicate broader non-compliance issues.

Key errors include using incorrect earnings thresholds so employers should consult our guidance on this. Employers should also check government guidance on maternity pay as miscalculating this can impact pensions contributions.

    Share Story:

Recent Stories


Closing the gender pension gap
Laura Blows discusses the gender pension gap with Scottish Widows head of workplace strategic relationships, Jill Henderson, in our latest Pensions Age video interview

Endgames and LDI: Lessons to be learnt
At the PLSA Annual Conference, Laura Blows spoke to State Street Global Advisors EMEA head of LDI, Jeremy Rideau, about DB endgames and LDI in the wake of the gilts crisis of two years ago

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement