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Wednesday, 21 January 2015 12:40
1.5million small employers to get reminder letter on pension duties
Letters will be sent to more than 1.5 million addresses across the UK reminding small and micro businesses of their automatic enrolment obligations before the end of this month.
The Pensions Regulator will be informing employers when the duties affect them, with the aim to ensure that by the summer all employers know their 'staging date'.
Companies which fail to meet the requirements in time face significant fines.
Research from the regulator has shown that significant numbers of small and micro employers do not know their staging dates.
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The regulator already writes to employers 12 months ahead of their staging date as part of its ongoing 'countdown' of communications to employers approaching automatic enrolment.
The new all-employer letter is in addition to this regular activity and also asks employers to provide email contact details to the regulator so it can provide them with regular reminders and updates as their individual staging date approaches.
Executive director of automatic enrolment Charles Counsell said: "Automatic enrolment affects every employer in the UK and they need to take timely action to get ready. The roll out of automatic enrolment has so far been a success and this letter will ensure that by the summer all small and micros are clear about when their duties begin, enabling them to plan ahead.
"From the end of January, letters will be sent out on a gradual basis over a number of months.
"We know from our own research that more than one million employers will be seeking help on automatic enrolment.
"Our message for advisers is clear: be prepared for clients to approach you about automatic enrolment. Let your clients know to look out for a letter from The Pensions Regulator in the coming months."
More than five million workers have already been automatically enrolled by their employers.
Research carried out by The Pensions Regulator indicates that workplace pensions are becoming the norm, with the majority of small and micro employers indicating that they believe it to be a 'good idea'.
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The Pensions Regulator will be informing employers when the duties affect them, with the aim to ensure that by the summer all employers know their 'staging date'.
Companies which fail to meet the requirements in time face significant fines.
Research from the regulator has shown that significant numbers of small and micro employers do not know their staging dates.
{desktop}{/desktop}{mobile}{/mobile}
The regulator already writes to employers 12 months ahead of their staging date as part of its ongoing 'countdown' of communications to employers approaching automatic enrolment.
The new all-employer letter is in addition to this regular activity and also asks employers to provide email contact details to the regulator so it can provide them with regular reminders and updates as their individual staging date approaches.
Executive director of automatic enrolment Charles Counsell said: "Automatic enrolment affects every employer in the UK and they need to take timely action to get ready. The roll out of automatic enrolment has so far been a success and this letter will ensure that by the summer all small and micros are clear about when their duties begin, enabling them to plan ahead.
"From the end of January, letters will be sent out on a gradual basis over a number of months.
"We know from our own research that more than one million employers will be seeking help on automatic enrolment.
"Our message for advisers is clear: be prepared for clients to approach you about automatic enrolment. Let your clients know to look out for a letter from The Pensions Regulator in the coming months."
More than five million workers have already been automatically enrolled by their employers.
Research carried out by The Pensions Regulator indicates that workplace pensions are becoming the norm, with the majority of small and micro employers indicating that they believe it to be a 'good idea'.
Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.
Follow us on Twitter and get frequent news alerts @FPM_online.
Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James.
For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.
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