Not a Qualifying Scheme?
Financial penalties are expected to be imposed on employers that do not meet the Automatic Enrolment Regulations.
The Pensions Regulator has been given a range of new powers in the Act. This includes the ability to issue notices which impose financial penalties.
However, the first step will usually be for the regulator to issue a compliance notice that formally directs an employer to comply with a relevant legal duty, or to make the required contributions to the relevant pension scheme.
Where an employer continues not to comply after a formal notice, they may receive a fixed penalty or an escalating penalty. A fixed penalty will be a fixed amount. An escalating penalty will continue to accrue day-by-day until the employer remedies their non-compliance.
To help you get a better understanding of this, please review our website further or contact our Financial Services department on 01473 408422 or ifa@wmibl.co.uk
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