Auto Enrolment - Pensions Regulator Clarifies His Enforcement Powers

With auto enrolment obligations starting to apply to employers from October 2012 it is timely that the Pensions Regulator has issued a strategy paper and policy guide outlining how it intends to ensure compliance and use its enforcement powers. The key points to note are that the Regulator will:

• use its robust registration system (which requires all employers to register how they are complying with the legislation) to monitor compliance;
• operate a "pro-compliance culture" meaning it will do all it can to educate and inform employers as to their duties (for example, the detailed guidance notes that have been issued);
• seek to maximise compliance by detecting noncompliance as quickly as possible and investigating breaches "fairly, objectively and professionally"; and using it powers to impose civil fines and criminal sanction only when necessary;