Unlike the largest organisations, SMEs are less likely to have access to in-house pensions support to guide them through the administrative processes, which can be quite complex if it’s the employer’s first encounter with workplace pension provision.
Thankfully, AE began with the largest employers, who have tried and tested the system and have some important lessons to impart.
The NAPF conducted research among some of the largest employers, Automatic enrolment: One year on , to explore the experiences of starting AE and to hear what employees who have been automatically enrolled think of their new pension rights.
Over the next few months The Pensions Regulator will be writing to more than 1.5 million addresses across the UK so that by the summer employers should not be in any doubt about their duty to enrol employees into a workplace pension. This communication will be in addition to the normal 12 months advance warning the regulator already undertakes to provide to every employer prior to their staging date.
It’s really important employers don’t overlook the requirements as the Pensions Regulator can issue a penalty notice if it considers there has been a deliberate attempt to ignore the workplace pension saving rules.
In tomorrow’s instalment of our auto-enrolment series, we take a look at the importance of communications…