…

Workplace pensions - Auto Enrolment case study

Situation

We were advising an employer who had contacted us because they were approaching their three-year re-enrolment date for Automatic Enrolment. They felt that it would be sensible to carry out a review of their Automatic Enrolment processes.

Problem

Unfortunately, they hadn’t interpreted the Automatic Enrolment rules correctly and their pension provider was unable to advise them. The employer had not issued the correct statutory notices which meant members hadn’t been informed of their rights and hadn’t been put into the pension scheme soon enough.

Implication

Since these errors had been going on for almost three years, the cost of making good the unpaid pension contributions was significant. The employer, who competes with other local employers for recruitment, was also concerned about the impact this could have on its reputation, making future recruitment even more difficult and more costly.

Pay off

By working closely with the employer we were able to identify the problems and recommend solutions. We also put together a plan of on-going support, so that the employer would continue to comply with their duties. Finally, we supported the employer with their discussions with The Pensions Regulator. The result was that the employer was able to fix previous errors and comply with their duties. Also, with our support, the employer was able to agree corrective action with The Pensions Regulator, without any penalties being paid.


Tags