Regulator warns AE enforcement set to rise

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The Pensions Regulator has used its powers to make sure employers comply with automatic enrolment duties on 23 occasions over the second quarter of the year, according to its first quarterly compliance and enforcement update.

The powers include the ability to carry out inspections and issue statutory notices, along with fixed penalties and escalating fines.

The regulator said it expects to see an increase in the number of occasions that it uses statutory powers and issues fines “as the number of employers staging and due to complete their declarations of compliance rises significantly over coming months.”

The number of auto-enrolled cases which were closed in the period amounted to 217 and the cases closed to date were 917.

Executive director of automatic enrolment Charles Counsell said: “Employers and the pensions industry are understandably interested to know how and when we use our powers. To date the vast majority of employers are complying with their new workplace pension duties without the regulator needing to use our enforcement powers.

“I believe this is a testament to the success of our proportionate, risk-based approach to compliance and enforcement. We target our resources where they will maximise compliance and work with employers to help them comply with their duties.

“We have provided the tools and assistance that large and medium employers need to ensure millions of workers didn’t miss out on the pension contributions they are entitled to. On a small number of occasions, when our intervention has not resulted in the required outcome, we have used our powers to help to ensure employers comply with their duties.”