Responding to a Freedom of Information Request, The Pension Regulator (TPR)* - the body charged with policing compliance with AE - announced the following last week:

• TPR recorded 134 breaches of AE duties
• 101 warning letters have been issued
• 28 cases of instructions issued by TPR via telephone, email, letter or in person

No fines have yet been levied however.

On the face of it this seems relatively low numbers of employers are failing to comply with the new legislation. But scratch the surface of this story, and you will see a potentially more concerning image.

The above findings represent the recorded failings of 8,800 employers that staged prior to January 2014. These employers are the largest by employee numbers in the UK. As such, the vast majority will have dedicated HR departments, payroll teams, and the assistance of Employee Benefit Consultancies to help them achieve compliance. Despite this, it is evident that a significant number still failed to understand and meet their duties appropriately.

The next few months sees another 27,000 employers staging. And many, perhaps the majority, of these employers will have no such luxury of resource and advice to help them comply. As a result it’s very likely that the numbers failing to comply will show a marked increase. And it is only then that we will have an adequate picture of how TPR intends to enforce these duties on an on-going basis.

It’s also evident that any early breaches and/or fines are likely to be exposed to increasing media scrutiny (this is not the first time that a Freedom of Information request has been used in connection with AE duties). I am quite sure that no employer would welcome this negative spotlight shining on them.

So the message is clear: make sure you are on course for AE compliance.

And for many employers that means taking action now.

Best regards

Steve

* Corporate Adviser website 07/03/14