500,000 Auto-Enrolment Duties
July 29th, 2015
The Pensions Regulator have estimated over a half a million more small and micro employers will have auto enrolment duties than previously estimated.
“The new figures, published today in The Pensions Regulator’s third annual automatic enrolment commentary and analysis, show that a total of around 1.8 million small and micro employers will need to meet their pensions duties over the next three years, compared to the previous estimate of 1.3 million.
The estimates shows the summer of 2017 will see a peak of around 350,000 small and micro employers whose automatic enrolment duties will come into effect (compared to earlier predictions of a peak of around 220,000 in mid-2016).
The report illustrates changes and trends in the pension landscape and that saving for a pension is becoming the norm thanks to automatic enrolment. It shows that most employers are now choosing to use DC pension schemes with a relatively even split between trust-based schemes and contract-based schemes.
Other key information included in the report:
- By the end of March 2015, a total of 5.2 million eligible job holders were automatically enrolled. Around 35,000 employers had completed their declaration of compliance between April 2014 and March 2015.
- 68% and 64% of small and micro employers respectively plan to seek help with automatic enrolment from a business adviser with accountants and IFAs likely to be the most commonly used.
- 98% of small employers and 94% of micro employers surveyed two to four months before reaching their staging date understood their automatic enrolment duties.
- From July 2012 to March 2015 around 52% of employers used postponement.
- In the year to the end of March 2015 we used our formal powers on 2,169 occasions, these included 1,682 compliance notices, 424 fixed penalty notices and 5 escalating penalty notices.”
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