Beware the cost of not complying with the Government’s auto enrolment requirements. Swindon Town Football Club was fined £22,900 by The Pensions Regulator for “repeatedly failing to comply with its auto-enrolment duties”. These included enrolling staff into a scheme from their staging date, paying contributions, writing to staff explaining how automatic enrolment affected them, and completing a declaration notice to indicate the company had complied with its duties.
Apart from the financial penalty, employers should consider the cost to their reputation of not complying with the regulations. When it is increasingly difficult to find talented and skilled employees, or to retain these employees, failure to comply with the pensions legislation sends a very poor message of the employer’s commitment to its employees.
If you have not yet reached your staging date, start planning now to ensure you comply in full with the requirements. If you have already passed your staging date, make sure that you have completed your obligations and have submitted your declaration notice to confirm your compliance.