Pension problems, prison pending?

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It’s an uncomfortable truth that some employers just don’t take work place pensions as seriously as they should. They don’t follow the correct procedures and they try and encourage their employees not to join the scheme. And just to be clear, this is ILLEGAL!

Every employee who qualifies has the right to join a work place pension without fear of reprimand or reprisal. Whereas any employer who tries to influence an employee should most definitely fear the Pension Regulator’s wrath.

The Pension Regulator is the government body that, unsurprisingly, regulates the workplace pension scheme. These people can ask to view all documents regarding your workplace pension, checking that you have completed all of the necessary forms and have not influenced your employees.

To stress this point, the Pension Regulator has just announced the first criminal prosecution of an employer who they suspect of falsifying the opt-out of all of their employees. It is suggested that the directors and senior managers of this firm falsely opted-out their employees to avoid making pension contributions.  With the possibility of jail time for each of them and an unlimited fine, paying the maximum 3% pension contributions probably doesn’t look that bad to them now.

We hope this helps highlight just how closely the Pension Regulator will look at each employer and as they are currently conducting spot checks in the North East, why not spend half an hour and review your workplace pension paperwork.

If you have the slightest concern, please speak to us as soon as possible.

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