New Compliance Requirements

Whatever qualifying pension scheme is chosen, employers need to be aware of additional regulatory obligations. These obligations have been introduced to make sure that the rights of employees are protected and prevent employers from non compliance. The rules are designed to manage areas of risk;

• Auto Enrolment Rules - Employers will be responsible for advising the Regulator how your company plans on meeting the enrolment duties with all the members in your PAYE scheme(s). If you do not register with the regulator, it will be flagged by reviewing records with HMRC.
• Opting Out Process Rules - Employers will have a duty to adhere to statutory employment rights. This will ensure the employee cannot be forced to sign unfair employment agreements which limit their rights, or enable their employment to be terminated on grounds relating to membership of the pension.
• Regulatory Communications Rules - Employers are required to supply employees with clear communications, which will include information on when they are to be auto enrolled and advice on when they are able to opt out of the process.
• Pension Contributions Rules - As with current workplace pension schemes, the pension trustee or administrators are duty bound to monitor your pension payments and report any failings to The Pension Regulator.

How does this affect employers in the UK?

The newly proposed regime will mean two additional expenses for employers, further to the cost already associated with a larger pension membership scheme and increased contributions;

• The administrative costs associated with meeting auto enrolment duties and registering new members. These rules are currently in development and will detail the information you're required to tell the regulator, your employee and the process which needs to be followed when enrolling employees or processing opt out requests.
• Any fines levied by the Pension Regulator for not complying with the new rules.

We have designed an employers guide to the new pension rules, please complete the form to download your free copy. Alternatively please contact us for further information or to speak to a workplace pension specialist.