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Lessening the impact of missing your auto-enrolment staging date

  • Blog
  • 30 November 2015

If you're going to miss or have already missed your auto-enrolment staging date, a penalty will probably be unavoidable, unfortunately. The best way in which to minimise the impact of non-compliance is to cooperate fully with the Pensions Regulator to make sure that you are on board as soon as possible. The worst thing to do would be to ignore it.

Lessening the impact of missing your auto-enrolment staging date

First and foremost, alert the Pensions Regulator to your situation. They may consider mitigating circumstances if you can offer proof, for example, if you missed your deadline due to events that were beyond your control. Whatever the reason for your non-compliance, show willingness to cooperate with the Pensions Regulator to ensure you have signed up to auto-enrolment for workplace or business pensions as soon as possible.

Communicate the up-coming changes to your employees and keep them regularly updated; explain how auto-enrolment affects them, and what options concerning pension schemes are open to them. If you are signing up late, you will be expected to cover backdated contributions from your company, as well as backdated deductions from employees. If you are more than 3 months late in complying with auto-enrolment, you will be expected to cover the cost of all employee contributions as well. The longer you leave it, the more costly it could become.

In selecting your company pension scheme provider, consider hiring an expert to help guide you through the numerous considerations. These include fees, annual costs, payroll adjustments for compatibility and more. Since time will be of the essence, any fees spent on an expert may be a wise investment in the longer run, particularly if you are some way past your deadline.

Keep the Pensions Regulator informed of your progress throughout, until you are fully compliant.

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