The Pensions Regulator has set out its strategy for tackling non-compliance with the pension reforms, including auto-enrolment.
The largest organisations will have to comply with the new duties from October, while the smallest employers will have to comply by 2017. Organisations that fail to comply with their new duties may be subject to statutory notices, penalties or escalating fines.
In addition, employers will be banned from offering incentives to their workers to opt out of the pension once they have been auto-enrolled.
The Pensions Regulator will consider using powers against employers where there is evidence of this behaviour. To help detect behaviour of this sort, the regulator will provide a system through which confidential reports of suspected non-compliance can be made.
Employers can find out what to do, when and how much they might need to pay in contributions by using the regulator’s online interactive tools.
Bill Gavin, chief executive of The Pension Regulator, said: “Every employer needs to play their part to make these pension reforms work, and our goal is to make that task as straightforward as possible.
“For those that do not engage, however, we want to make it clear there are consequences. We will apply the law fairly and where we find consistent or wilful non-compliance we will use our powers, so that employees do not miss out on contributions they are due.”
Charles Counsell, executive director for employer compliance at The Pensions Regulator, said: “We’re supporting employers every step of the way so it’s clear what they need to do, by when and how they go about doing it. This includes writing direct to all employers at least twice and issuing guidance to their advisers and industry bodies.”
Read more about pensions reform and auto-enrolment