Law Firm Blows Whistle On Non-Pension Law Compliance In The United Kingdom
The UK Pension Regulator had quadrupled its efforts to enforce the law against employers who do not comply with the new pension laws. According to Law Firm Clyde & Co. whistleblowing reports were made the previous year in thousands.
Approximate figures indicate that 2,500 reports made the past year indicate companies having difficulty even with the smallest pension schemes. About 8,800 enforcement actions were launched from the reports.
Further information from Clyde & Co indicate that small companies find difficulty to enrol their eligible employees into pension schemes. The report indicates that the guidance the UK Pension Regulator gave SMEs were insufficient. This left many companies paying more than £10,000 daily for failing to enrol all employees on time.
According to Clyde & Co Head of Pensions Mark Howard:
“The regulator has put out a lot of guidance aimed at SMEs, but even so it is not surprising that we are seeing the number of whistleblowing and enforcement actions increase as the number of employers subject to auto-enrolment grows substantially.”
“Auto-enrolment is not going to disappear and the paper work can often take far longer than expected,” Mr Howard added. Many SMEs lack fully-fledged human resources departments to handle the administrative burden.
“SMEs should not bury their heads in the sand and hope the problem will go away — they need to identify staging dates, check if current pension plans are sufficient or what needs to be done to bring them up to standard and which employees may need to be enrolled,” he said.