In a
press release on September 26, 2022, the Regulator warned employers to ensure they are complying with their ongoing automatic enrolment duties.
The warning followed a series of in-depth compliance inspections of over 20 large employers across the UK, consisting of nearly 1.5 million staff, which found a number of common errors relating to contribution calculations and communications to staff.
While the vast majority of employers are successfully meeting their automatic enrolment duties, the Regulator found that administrative mistakes could put staff at risk of missing out on their pensions and employers at risk of unintended non-compliance.
The inspections found that key errors potentially leading to employers needing to make costly backdated contributions include using incorrect earnings thresholds, on which the Regulator has issued
guidance. Employers should also ensure they check
government guidance on maternity pay as miscalculating this can impact pensions contributions.