The Pensions Regulator (TPR) has published its approach to maximising employer compliance with auto-enrolment duties and supporting the pensions industry to deliver defined contribution (DC) schemes with the characteristics necessary for good outcomes.
TPR’s strategy, Delivering successful automatic enrolment: The Pensions Regulator’s approach to the regulation of employers and schemes, sets out how TPR will support the government’s pension reforms by aiming to ensure that as many employers as possible comply, and encouraging those providing workplace pension schemes to provide safe, durable and value-for-money vehicles.
The strategy intends to maximise employer compliance with auto-enrolment duties by:
- Providing employers, intermediaries and advisers, with the information, tools and support they need to get to grips with the new duties.
- Establishing a pro-compliance culture so employers understand that the law is being applied fairly, that employers around them are complying, and that willful or persistent non-compliance will result in a fine.
- Ensuring that effective systems are in place for detecting and tackling non-compliance.
The document also explains how TPR will work with the pensions sector with the aim that employees are auto-enrolled into pension products that are well-governed, durable and offer value for money by:
- Encouraging the market to deliver schemes that encompass TPR’s six principles for good design and governance of DC schemes.
- Taking a segmented approach to regulating the DC landscape, recognising that some segments are more likely than others to deliver good outcomes.
Bill Galvin, chief executive at The Pensions Regulator, said: “The Pensions Regulator is committed to increasing both confidence and participation in workplace pensions.
“Up to eight million people will eventually be newly saving or saving more under automatic enrolment.
“Our approach will be to provide high-quality information and support so that employers know what they need to do to fulfil their new duties, and take action at the right time.
“The vast majority of members will be automatically enrolled into DC schemes. We will take a targeted approach to risks within the different segments of the DC landscape, and work with the pensions sector to encourage the design and delivery of products that place the interests of employees at their heart.”
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