The Pensions Regulator has said it will start contacting the biggest British companies to alert them of their new pensions duties when the Nest auto enrolment is rolled out after 18 months.
The regulator has already put up the information on its website. Auto enrolment will be introduced either gradually or on a staged basis, depending upon the employer size. A five-point check list has been provided by the regulator along with the notification letter.
The regulator is expected to send letters to the UK’s 600 biggest employers first, whose combined employee strength is about 10 million or one-third of the total workforce.
As duty date approaches, every employer in UK would have received at least two letters from the regulator.
“Our message is that we urge every employer to check the approximate date they must comply. The date will vary between October 2012 and February 2016, depending on employer size”, said Bill Galvin, chief executive of The Pensions Regulator.
“We are saying to the UK’s 10,000 large employers with more than 250 staff to check your date now, read our guidance and use the five-point employer checklist to help prepare”, he added.
However, smaller employers need not worry about the duty date he said, adding: “We are saying to the UK’s 10,000 large employers with more than 250 staff to check your date now, read our guidance and use the five-point employer checklist to help prepare”.
However, the regulator’s interim executive director for employer compliance Charles Counsell said small and micro employers need to know the requirements although automatic enrolment is some time away for them.
“Although small employers are a new audience for us, we have done substantial work to understand their information needs. Our web tools which will go live later in the year have been designed specifically to help them get to grips with what they need to do”, he said.
“These have received positive feedback from our target audiences during testing”, he added.