An update from the Pensions Regulator
Talking Head: The start of auto-enrolment for small and micro employers has been a success, with more than 90 per cent of the first group to reach their staging date compliant.
Around 12,000 small and micro employers became subject to the new legal duties last summer, and the majority have put eligible staff into a pension without the Pensions Regulator having to use its powers
Our most recent 'Compliance and Enforcement' quarterly bulletin showed a sharp rise in the number of statutory notices issued by the regulator at the end of last year.
We want to examine the ability of pension scheme trustees and trustee boards to continue fulfilling their roles and responsibilities.
With a significant rise in the number of employers completing their duties and the different behaviour of small employers this is not a surprise.
Update on enforcement activity
We take a risk-based proportionate approach to compliance and enforcement and recognise that employers who do the right thing want to see that non compliant employers are subject to enforcement action. Employers who are concerned they risk being non-compliant are urged to contact the regulator.
More than 1,500 £400-fixed penalty notice fines have now been issued to employers.
The bulletin contained a warning that some employers risked becoming non-compliant by failing to complete their declaration of compliance because they wrongly assumed their business adviser was doing this for them. Employers and their advisers should be clear who is completing what auto-enrolment task.
Trustee update
The pensions landscape has changed dramatically over recent years, bringing with it increased demands on trustees. We want to examine the ability of pension scheme trustees and trustee boards to continue fulfilling their roles and responsibilities.
We are also considering how we can better support trustees in the challenges of the 21st century and we have carried out qualitative interviews with trustees, exploring key areas in more detail.
We have also been observing trustee board meetings, seeking examples of best practice and gaining deeper insight into the issues and challenges experienced by trustees in their day-to-day working.
This spring we will be publishing a discussion paper and further research findings to stimulate constructive debate about board effectiveness.
This will look at areas including how government, regulatory bodies and the pensions industry can raise standards of competence, increasing the likelihood that members’ retirement savings are in good-quality, well-governed schemes.
We will consider options that are achievable using our existing powers within current legislation, and those which would require the consideration of parliament.
Lesley Titcomb is chief executive at the Pensions Regulator