Barnett Waddingham has developed a new system in partnership with Sanctum Software to assist firms that have already implemented auto-enrolment and help make sure they are compliant with current legislation
The auto-enrolment audit service checks if systems and processes are compliant by running a comprehensive analysis of the actions taken for each employee since the firm’s staging date.
Where problems are identified, rectification action can be taken and future processes corrected, reducing the risk of potentially costly regulatory censure.
The development of the service follows demand from firms who have been through the auto-enrolment process and are concerned that they may not be fully compliant.
Mark Futcher, a partner and head of defined contribution at Barnett Waddingham, said the reality is that many firms who tried their hardest to comply with the complex legislation may think they have sorted out their provision, but could be in for an expensive fall in the future.
“The Pensions Regulator can audit a scheme up to six years back, so if a firm has made an error they could end up having to rectify incorrect employer/employee contributions and even cover lost investment returns.”
He added that the cost of mistakes that some companies will have made in the last two and a half years could potentially be very financially damaging.
In addition to being used as a general due diligence measure, the audit service will also be of interest to firms who are going through a corporate restructure, changing pension scheme providers, consolidating several pension schemes or changing payroll providers.