Employers in danger of leaving auto enrolment too late

28 May 2014

With reports from some of the major pension providers stating that many employers could be missing their staging dates and the concern they will not meet their obligations for auto-enrolment, LEBC Group (LEBC) is fully endorsing The Pensions Regulator’s support of automated systems as a significant aspect of the way forward. 

Glynn Jones, Divisional Director at LEBC commented, “Employers have no choice, they have to comply with auto-enrolment and the danger is that as more fall behind on their obligations the worse their problems will get. Whilst at the moment the regulator seems to be lenient with transgressors sooner or later that will change and fines will be handed out which nobody wants to see.”

From experience, the four key considerations LEBC believes employers should make before deciding on a system to support their auto-enrolment obligations are:

  1. Examine their own resources and be clear where auto-enrolment will sit within their business whether it is a function of HR, finance or payroll, or a mix
  2. Check the resources that have gone into the system they plan to use and that it will be robust enough to cope with all requirements including communication. Also check it has been back-tested over a given period to prove it will be able pick up all employees, existing and new, who are not eligible at the start date
  3. Make sure the system has been checked by The Pensions Regulator
  4. That there is enough resource in the system to cope with future legislative and practice changes

The CIPP also recommends that organisations assess their readiness for automatic enrolment to ensure they understand what their obligations are, we offer a self-assessment exercise which can assist with this.


More news