Are employers failing to comply on auto-enrolment? The rise in penalty notices issued by The Pensions Regulator on employers who haven’t complied with auto enrolment (AE) responsibilities, highlights that self-certification auto enrolment is like letting drivers do their own MOT, according to National IFA, pensions and employee benefits consultancy, LEBC Group (LEBC).
The compliance information required from employers is not particularly detailed meaning that ‘compliant’ employers are still inadequate in providing their AE offering.
Glynn Jones, divisional director at LEBC says there are two main issues. “Firstly employers are saying they have done AE but are not doing it. The Pensions Regulator says 90 percent of employers are compliant when in fact 90 percent of employers are filling in a form to claim they are compliant which is about as reliable as a DIY MOT on your car”.
“Secondly, providers can’t really have any idea about who has been enrolled in a scheme and the contribution levels as they just receive and invest contributions. The only circumstance in which a provider can spot a problem is when the employer sets up a scheme and does not use it. All employers, even those which consider themselves compliant should audit their scheme regularly just to ensure there are no gaps in provision or the meeting of the AE regulations”.
