The Pensions Regulator (TPR) has fined an unnamed company £350,000 for workplace pension failures. Employers are being warned by the regulator not to put their “head in the sand” over pension contributions.
The fine was issued to the employer, which has 5,000 staff, after it allowed an Escalating Penalty Notice to grow before correctly re-enrolling staff into the company pension scheme and paying the right contributions.
Following TPR’s intervention, the London-based company has now re-enrolled more than 40 staff and paid more than £100,000 of backdated pension contributions, as well as ensuring ongoing contributions are correctly calculated and paid. The backdated payments, which are in addition to the fine, cover both the re-enrolment failure and incorrect contributions affecting more than 2,000 staff.
Darren Ryder, director of automatic enrolment at TPR, said: “This size of fine is rare as the vast majority of employers now consider automatic enrolment to be an everyday part of running their business and helping workers to save. However, this case is a stark warning that failing to address problems early can lead to hefty fines which could be avoided.
“We do not want to fine businesses, we want them to meet their legal duties and we are here to help them do this.”