If businesses do not put measures in place to correctly re-enrol their staff into a workplace pension then they could face being fined by The Pensions Regulator (TPR).
Due to the fixed penalty notice of £400, businesses need to re-enrol certain workers that back into the qualifying pension scheme every three years.
If the fine is not paid within a certain period of time, this can rise to between £50 and £10,000 a day until the fine is paid.
Businesses should ensure the data they hold on employees is correct and up-to-date.
The integrated platform Pensionsync called on TPR to put regular data accuracy checks in place, after the firm found errors in half of the data employers sent to providers on the auto-enrolment contributions of their staff between August 2017 and July 2018.
The TPR’s analysis report revealed that 84 per cent of employees are saving into a workplace pension, which is up from 77 per cent last year.
The report also indicated that the total amount saved in workplace pensions by eligible staff in 2017 was £90.3 billion, up from £86 billion in the previous year.
The value of fines issued by TPR has more than tripled in a year, reaching £42 million in 2017/18.
Smailes Goldie Group
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