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Employers confident of AE success

Ref: PN17-35
Friday 7 July 2017

Automatic enrolment is business as usual for employers who say they are confident they are meeting their workplace pensions duties successfully, new research shows.

For the first time, The Pensions Regulator (TPR) has published research into how UK employers are meeting their duties following the completion of their declaration of compliance (PDF, 1385kb, 58 pages).

Around 96% of employers asked said they are confident they are fully compliant with their ongoing duties towards their staff.

The research, which asked employers about their attitudes towards their ongoing duties, also shows employers found automatic enrolment easier than expected.

Most micro employers said they spend around half an hour each month meeting their duties and two thirds did not use outside help. Those who did said it cost them around £42 per month to use an accountant or auditor to help them.

TPR’s Director of Automatic Enrolment Darren Ryder said:

“These new figures show automatic enrolment is now simply part of running a business and that most employers have found meeting their duties less complicated than they expected.

“The vast majority of employers comply on time and it is encouraging that so many employers are confident they are doing the right thing for their staff.

“Employers can find the information they need to meet their ongoing duties on our website so they can ensure they are carrying out their duties correctly.”

Employers have a continuing responsibility to carry out the following duties after implementing automatic enrolment:

  • keeping records of all automatic enrolment activities
  • monitoring the ages and earnings of new and existing staff every time you pay them to check whether they are eligible to join the pension scheme
  • enrolling staff and notifying them to let them know you have done this as they become eligible
  • managing requests to join or leave your pension scheme
  • paying contributions to employees’ pension scheme

For further information see our guidance on ongoing duties.

Editor's notes

  1. A survey published by OMB Research for TPR asked employers who had completed automatic enrolment about their awareness of, intentions regarding and attitudes towards ongoing and future duties relating to automatic enrolment.
  2. At least 92% of all employer sizes were aware of each of the five ongoing duties for automatic enrolment. The survey focused on micro, small and medium employers. Full awareness ranged between 92% for micro employers to 99% for medium employers. 70% of employers said they were 'very' confident that they were fully compliant and 26% said they were 'fairly' confident.
  3. TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of TPR’s functions under Part 3 of the Pensions Act 2004 only).

Press contacts

Ciara Bridge-Butler 01273 662018

pressoffice@thepensionsregulator.gov.uk

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