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Regulator takes action against auto-enrolment failing firms
The Pensions Regulator has revealed it used its powers to ensure employers comply with their automatic enrolment duties 23 times during the second quarter of this year.
The body's powers include the ability to carry out inspections and to issue statutory notices including fixed penalty and escalating fines.
As the numbers of employers staging and due to complete their declarations of compliance rises significantly over coming months, The Pensions Regulator expects to see a corresponding increase in the number of occasions that it has to take action and issue fines.
The latest report on compliance included a case where an employer was required to backdate pension contributions after failing to meet its duty to automatically enrol.
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Executive director of automatic enrolment Charles Counsell said: "We have provided the tools and assistance that large and medium employers need to ensure millions of workers didn't miss out on the pension contributions they are entitled to.
"On a small number of occasions, when our intervention has not resulted in the required outcome, we have used our powers to help to ensure employers comply with their duties."
He said the body recognises that it needs to highlight the consequences for employers who seek to avoid their statutory obligations.
The regulator's compliance and enforcement strategy aims to deter and prevent non-compliance by sharing learning and by ensuring employers understand the challenges they face complying with their duties, he said.
Mr Counsell said: "To date the vast majority of employers are complying with their new workplace pension duties without the regulator needing to use our enforcement powers.
"I believe this is a testament to the success of our proportionate, risk-based approach to compliance and enforcement.
"We target our resources where they will maximise compliance and work with employers to help them comply with their duties."