The Pensions Regulator (TPR) has issued a warning to small companies that fail to heed 28-day warning notices to enrol their staff in pension schemes.
The regulator states that firms could be hit with a fine that will rise with every passing day until they comply. 95% of small firms who are required to auto-enrol their staff have now done so, but fines for non-compliance are on the rise.
The Escalating Penalty Notice (EPN) is one of the statutory powers TPR has to help maximise employer compliance with automatic enrolment duties. It specifies the date by which the employer must comply with certain actions or be subject to a fine. The fine levied for non-compliance is £50 per day for firms with between one and four staff, and £500 a day for those with between five and 49 employees. 96 EPNs have been issued by the regulator in the current quarter, bringing the total issued to 127. Swindon Town Football Club hit the headlines as one of the employers fined for non-compliance.
The purpose of automatic enrolment is to ensure that all employees are paying into a pension scheme and staff are legally entitled to receive these pension contributions. Make sure you are compliant and if you aren’t, then talk to us sooner rather than later.