TPR fines auto-enrolment firm over unpaid £900k
The administrators of a master trust failed to report their failure to collect or invest nearly £900,000 of auto-enrolment pension contributions on behalf of their members.
Smart Pension Limited, which runs the Autoenrolment.co.uk master trust, failed to tell The Pensions Regulator (TPR) that 498 employers had missed contributions that were due.
Smart Pension also did not inform the pension scheme members of the issue.
It found that the scheme trustee, EC2 Master Ltd, did not ensure the scheme had a proper reporting system in place to comply with legal requirements.
Failing to report material payment failures is punishable by a civil penalty under Section 10 of the Pensions Act 1995.
TPR has now fined the scheme trustee £15,000 for not reporting the missing contributions and for failing to tell members about the problem.
Smart Pension launched Autoenrolment.co.uk in January 2015 to serve the automatic enrolment market.
In total more than 2,100 members were affected by the failures between August 2015 and May 2017.
They were only told their contributions had not been collected and invested after TPR informed Smart Pension it was their duty to contact them.
Following the investigation TPR says new systems and processes were implemented by the trustees and Smart Pension and that the master trust “worked quickly with TPR to report the employers so enforcement action could be taken where necessary to help protect their members.”
Nicola Parish, TPR executive director of frontline regulation, said: “It is vital that workers can be confident that their contributions are being collected and invested properly so that their savings can grow.
“They have a right to know if payments are not being made and we need to know so that we can investigate why it is happening.
“Smart Pension’s systems and processes were ineffective and the trustee’s failure to act on its responsibilities was unacceptable, but we are encouraged by the commitment of both to improving the way they work.”
She added: “We are clear that schemes must have efficient and robust processes in place to protect members’ funds.
“We will take action where this is not the case.”