As part of the Government’s 2017 Auto-Enrolment (AE) review - the Department for Work and Pensions (DWP) has published its thinking on workplace pension reforms. The following are summarised key trends and analysis identified in its research;
12 million workers are currently under-saving.
However, most employees and employers are contributing at a higher rate than the current (low) AE minimum.
Participation rates were highest among the largest employers, those employees earning the most, older employees and were slightly higher among women when compared to men.
The biggest increases in participation have been amongst younger people, those with lower earnings and those working for smaller employers.
By the end of June 2017, the Pension regulator had concluded more than 60,000 cases investigating possible non-compliance by employers.
The Pension Regulator can impose fines ranging from a £400 fixed penalty to a varying daily escalating penalty from £50 to £10,000 for non-compliance of auto-enrolment regulations. Separate information published by the Pension Regulators in its latest compliance and enforcement quarterly bulletin details:
a nearly 50% increase in the number of compliance notices issued to employers compared to the last quarter for failing to meet automatic enrolment duties.
Please contact us for further information and how we can ensure your business manages its AE duties and implements an effective scheme governance, employee communication and engagement process.