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Are your clients aware that their automatic enrolment duties have not changed in light of COVID-19?

With COVID-19 continuing to impact businesses, The Pensions Regulator has launched a digital campaign targeting employers with the key message that an employer’s automatic enrolment duties remain unchanged, and that employers must continue to pay into their staff workplace pensions.

The aim of the campaign, which will run until the end of October, is to ensure employers understand what they need to do to comply with their AE duties, safeguard savers’ pension pots, and raise awareness that The Pensions Regulator will take enforcement action against employers who do not comply with their duties.

Make sure your clients are aware

Make sure your clients know that although their business might have changed due to COVID-19, their responsibilities towards their staff haven’t. Your clients must continue to assess and put eligible staff into a pension, they must continue to make the correct employer and employee contributions on time and they must complete re-enrolment duties and their declaration of compliance.

Since the beginning of August, employers have had to pay pension contributions and National Insurance contributions for all staff. They will still be able to claim 70% of staff wages through the Coronavirus Job Retention Scheme in September, and 60% in October, before the scheme closes on 31st October.

Automatic enrolment duties remain unchanged

With the government’s Coronavirus Job Retention Scheme due to close at the end of October, it’s important to make sure your clients are aware of their automatic enrolment duties. Whether their staff are working or on furlough, they shouldn’t miss out on a pension because their employer failed to do the right thing. The Pensions Regulator are monitoring pensions closely. It will take enforcement action where an employer is not complying with their legal duties. You can help stop this from happening.

Encourage your clients to read The Pensions Regulator’s employer guidance so they don’t fall foul of the law.

About the author

The Pensions Regulator

August 2020