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Since 1 October 2017, thousands of start-up businesses have instant pension duties, and more than half will have to enrol staff into a workplace pension.
The Pensions Regulator highlights the success of auto enrolment to date in its fifth annual commentary and analysis report. Auto enrolment rolled out for more than 700,000 employers last year including many start-up businesses and new employers.
The report contains upper and lower estimates of the numbers of new employers expected to have pension duties until the start of 2020. The Pensions Regulator (TPR) predicts that around 73% of all small businesses, and nearly half of micro businesses, are expected to have eligible staff.
There has been a huge increase in the number of employers staging, from 136,749 staging in 2016 to 479,566 staging in 2017. These figures demonstrate how auto enrolment will continue to reverse the decline of saving into a pension. In 2012, 55% of staff were saving into a pension scheme and by 2016 it had increased to 78%.
By the end of March 2017, nearly 7.7 million staff had been automatically enrolled by around 500,000 employers.
TPR’s Director of Automatic Enrolment Darren Ryder stated:
“saving for retirement is becoming the social norm and the success of automatic enrolment is playing a key role in this shift”.
Automatic Re-enrolment must be completed every three years. Staff must be assessed and those who opted out initially, must be put back into the pension scheme. 12,000 employers are expected to have completed re-enrolment by the end of 2017.
TPR began employer spot checks across the country to check if employers are meeting their duties. Compliance with the law remains high and TPR are trying to tackle non compliance. A small minority of employers received County Court Judgements for failing to pay their auto enrolment fines.