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Employers urged to check when automatic enrolment affects themBack

PensionsThe Pensions Regulator is urging small and medium employers to find out when their new workplace pensions duties begin after recent research shows many have yet to check when automatic enrolment will affect their business. Only one in four micro employers and half of small employers know their staging date.

Thousands of medium sized employers due to stage before August should now have in place a suitable pension provider and payroll software. If they have not, then they need to act now to avoid the risk of failing to meet their deadline to comply and the possibility of enforcement action, including fines.

The Pensions Regulator’s executive director of automatic enrolment, Charles Counsell said:

“Most medium employers due to automatically enrol between July and early 2015 know about the changes in the broadest sense, but many still haven’t considered exactly what they will need to do and by when.
“It really is time to act. Too many employers still think they can leave it as late as possible and don’t understand the actions they need to take.
“Around half of employers told us they will be relying on an adviser to help them meet their duties. I would urge those employers to start to investigate who can help them, when and how.”

Nick Boxall, assistant manager of payroll and pensions at the Southend-on-Sea based specialist medical supplies company Olympus KeyMed, recommends allowing time to check software needs:
“I would suggest that employers review their current payroll/HR systems to identify if there is already a tool available to help you through the auto enrolment process. It would be best to involve your software suppliers at an early stage to ensure they can accommodate your requirements.”

Employers can act now by visiting www.thepensionsregulator.gov.uk to check their staging date and start planning for automatic enrolment.

Posted by Sue Robinson on 09/05/2014