Asked by: Mark Hoban (Conservative - Fareham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the capacity of pension advisors and providers to support employers who are scheduled to establish workplace pensions through auto-enrolment in 2014.
Answered by Steve Webb
The Government is aware of the capacity challenges facing the pensions industry. DWP is engaging regularly with pension providers to ascertain capacity as we move through the medium employer staging dates.
We are confident that NEST will continue to accept all employers in accordance to their Public Service Obligations and will be able to overcome any challenges of employers going to them late.
Automatic enrolment has been designed so that employers do not need to take advice in order to comply with their duties although we understand that many will choose to pay for advice. The Government engages regularly with intermediaries and believes that there is capacity and interest in the market to meet demand.
Asked by: Mark Hoban (Conservative - Fareham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps his Department is taking to ensure that employers comply with their obligations under auto-enrolment.
Answered by Steve Webb
The Pensions Regulator (TPR) has overall responsibility for enforcing compliance with the new employer duties and employers must register with TPR and state how they are meeting the duties.
TPR's focus is on educating and enabling employers to meet their duties and establishing and maintaining a 'pro-compliance' culture.
TPR writes to all employers 12 months before the date they are required to start enrolling workers, and on at least one other occasion (depending on employer size). TPR has also encouraged employers to start planning early (at least 12 months prior to their duties start date). It has provided tools and guidance to help employers plan and these are under constant review as the reforms roll out.
Some employers will fail to comply because they have not understood or have not been able to comply. Where employers do not comply, TPR will consider the circumstances of each case and, where it is appropriate to do so, work with employers to get them compliant. TPR has a graduated approach to enforcement beginning with warnings leading to statutory notices then financial penalties. Criminal prosecution will only be used in the most serious cases.