The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it.
This is called ‘automatic enrolment’ because it is automatic for staff – they don’t have to do anything to be enrolled into a pension scheme, but it is not automatic for employers.
What happens if my clients don't comply?
We recognise that most employers will want to do the right thing for their staff but we will use our powers where necessary to ensure compliance. Employers who do not comply will face enforcement action which can include fines and / or prosecution. Find out more by reading our compliance and enforcement strategy.
All employers will need to work out if automatic enrolment applies to them.
If your client has at least one member of staff who is paid via a PAYE scheme, automatic enrolment duties apply.
Your clients can use our duties checker tool to work out how automatic enrolment applies to them and what they need to do and by when. Find out more about the duties checker tool.
The role you play in helping your client may depend on the type of adviser you are. They may expect you to help them by simply providing advice or offering a full automatic enrolment service.
Legal responsibility for automatic enrolment lies with the employers but they may ask you to help them. The following steps will walk you through the tasks which must be completed in order for your client to implement automatic enrolment. These steps will help you decide what services you are going to provide. It is important your client knows exactly what services you will be offering and that you are both clear who will be undertaking particular tasks.
The Pensions Regulator is writing to all employers to alert them to when their automatic enrolment duties start. They will be asked to nominate the employer contact who will receive important information from us. Your client may want to nominate you as an additional contact.
If you’re nominated as an additional contact, we'll send you regular emails letting you know what your client will need to do to meet their automatic enrolment duties.
What you need to do and by when
We recommend you understand the timings and tasks, to help prepare your clients for automatic enrolment.