Whichever
qualifying scheme is adopted, you will have
additional regulatory requirements to be
aware of.
The requirements are being introduced to
ensure that employees’ rights are
safeguarded. This will stop non-complying
employers achieving any competitive
advantage, and to minimise compliance action
taken. They’re designed to manage three key
areas of risk.
- Risk to auto-enrolment: you’ll be
required to register how you will meet
your enrolment duties for each of the
PAYE
schemes you run. Failure to register
will be detected by comparing records
with HMRC.
- Risk to the opt-out process: you’ll
be required to comply with new statutory
employment rights. These will include
the right of employees not to be
dismissed on grounds related to pension
membership and restrictions on
agreements which limit your new duties
and employees’ rights.
- Risk to pension payments: your
payments will be monitored by the
pension scheme trustees or
administrator, who will report any
failures to the Pensions Regulator
(essentially the same as the current
situation with workplace pension
schemes).
What this
means for you?
This proposed new regime will place two
potential additional costs on your business.
- The first will be the
administrative cost of registering
and meeting your new enrolment
duties. There are detailed rules
being developed covering what you
have to tell the Regulator and your
employees and also the processes for
enrolling staff and dealing with
opt-outs.
- The second cost will be incurred
only by anyone fined by the
Regulator in the event of
non-compliance.
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