Between April 2014 and April 2017 small and micro employers will have to auto enrol their employees into a pension scheme. If they fail to do this, the Pensions Regulator can impose daily fines.
There is no exemption for companies in Administration so Administrators of a trading company, who are in office after a company’s staging date, will need to have complied with this requirement.
The Pensions Regulator can give an extension of time of up to 3 months but it can take 6 to 9 months to put the necessary processes in place, depending on the size of the workforce, the nature of the workforce (part timers and casual staff are tricky to deal with) and the completeness and accuracy of payroll records.
Administrators now need to be thinking about pensions when they are taking an appointment.
If Administrators have experience of having to auto-enrol we would like to hear from you.
In the meantime, the organisation Pensions BIB, is developing a payroll data interface standard (PAPDIS) to try to simplify the process for employers (see this link).