The Pensions Regulator has released its first name and shame list of employers who have been taken to court for failing to pay fines for workplace pension non-compliance, including 13 companies which have been fined £220,000 to underline the importance of meeting automatic enrolment requirements
The worst offenders were 20 employers who were given escalating penalty notices (EPNs) for a total of more than £60,000. However, despite having paid the escalating penalty notices, these employers continue to be non-compliant with their workplace pension duties.
Another list includes 13 employers, who refused to pay escalating penalty notices of more than £220,000, and then faced court orders demanding payment. They include both compliant businesses, and non-compliant businesses whose cases are being reviewed pending further action.
Organisations across the UK, from the north of Scotland to the south of England, have been named and shamed, including a law firm in London and a hotel in Reading which was fined £14,000, while Woodlands Manor Care Home Ltd in Bristol owed £52,500 under auto enrolment rules.
Charles Counsell, The Pensions Regulator’s executive director of automatic enrolment, said: ‘Employers who wilfully refuse to become compliant should be in no doubt that we will take enforcement action against them, as these lists show.’
There was a large increase of inspections of business premises to check for compliance, up from 57 in whole of 2016 to 224 inspections over the three-month period.
More than 4,673 fixed penalty notices of £400 for automatic enrolment non-compliance were issued in the first three months of 2017, up from 2,919 the previous quarter – the largest total issued to date.
Auto enrolment was introduced in 2012 and is a compulsory pension compliance system for employers, whereby they have to provide auto enrolment pensions and contribute to them, while employees can opt out if they wish.
A study by Chase de Vere, a firm of financial advisers claims that the administrative burden is the biggest hurdle for companies when implementing auto enrolment.
Nearly four in 10 (37%) of employers surveyed cited the admin overload as a big deterrent, whit 23% complained about the cost of providing auto enrolment pensions for their staff.
Just 5% of those polled used an accountant to advise on setting up auto enrolment, while 62% opted to manage pension administration in house, compared to 11% who used payroll services or an accountant.
Sean McSweeney, corporate advice manager, Chase de Vere, warned: ‘Costs will rise for many employers as minimum contribution levels are increased in April 2018 and again in April 2019.’
Pat Sweet
