From October, thousands of start-up businesses will have instant pension duties, with more than 50% of them having to enrol staff into a workplace pension, so say new figures from The Pensions Regulator. Their fifth 'Automatic Enrolment Commentary and Analysis Report' shows that as well as auto enrolment being a huge success, it will continue to roll out across the UK for more than 700,000 existing employers as well as new businesses in the forthcoming years.
Commenting on the release of the report, Darren Ryder, the Director of Automatic Enrolment at The Pensions Regulator urged anyone setting up a business to make sure they are ready to comply with the law so that their staff receive the pensions they are entitled to. "Saving for retirement is becoming the social norm and the success of automatic enrolment is playing a key role in this shift. Our figures show that new businesses will continue this trend as they ensure workers are enrolled into a workplace pension."
"Automatic enrolment is now simply part of running a business and from October, as soon as employers take on staff for the first time, they will have duties. More than half of these new businesses will need to set up a pension scheme so that staff can begin saving."
"The job of implementing AE is not complete and we are not complacent. We will be continuing to help steer hundreds of thousands of employers through their workplace pension duties. Those setting up a business should visit our website to find all the information required."
Employers who have eligible staff have no option concerning whether to auto enrol them, and failure to do so can result in fines from The Pensions Regulator. The report notes that 33,716 compliance notices have been issued in the past 12 months, as well as 12,181 fixed penalty notices, four warrants, 12,181 fixed penalty notices, 1,193 unpaid contribution notices and 252 escalating penalty notices.