Auto-Enrolment and the Declaration of Compliance

Between May and August 2017, over 100,000 small employers and their business advisers must complete and submit a Declaration of Compliance to The Pensions Regulator regarding Work Place pensions and Auto-Enrolment.

This article looks at what you need to know about completing a declaration of compliance form.

Employers’s Workplace Pensions Duties

All employers have workplace pensions duties. These duties mean they will need to automatically enrol certain staff into a pension scheme and make contributions to it. They need to assess their staff, put those that they need to into an approved work place pension scheme, and tell them about automatic enrolment. They should start planning for automatic enrolment 12 months before their staging date. The staging date is the date their duties come into effect.

Who needs to complete a Declaration of Compliance?

All employers with one or more staff have a legal requirement to complete a Declaration of Compliance. Even if they do not have any staff to put into a pension, they must complete the declaration to confirm they have met their duties.

When does the Declaration of Compliance need to be completed by?

 

Each employer has a declaration of compliance deadline which falls five months after their staging date. Their declaration of compliance needs to be completed and submitted to The Pensions Regulator by this deadline. Although employers have five months to complete their declaration, our ‘best practice’ advice is to start completing it as soon as possible after the staging date. Filling in details as you go through the automatic enrolment process will help you avoid missing the deadline.


What if postponement has been used?

If postponement of the deadline has been used, a declaration of compliance cannot be completed until after the postponement period has ended. However, don’t leave filling in the details until then as there may be very little time between the end of the postponement period and the declaration deadline. It’s a good idea to fill in the details as you get them so that you do not risk running out of time.


What if I don’t complete the declaration of compliance on time?

Failure to complete your declaration on time could lead to a fine.

It is the employer’s legal duty to complete their declaration of compliance correctly and on time. If it is not completed on time, then action is likely to be taken by the Pensions Regulator (TPR) which could lead to a fine. If you are having difficulties implementing automatic enrolment or gathering the information to complete your declaration by your deadline, please contact TPR immediately. Alternatively, contact us for help and advice.

Where do I find the Declaration of Compliance form?

Normally you will receive a letter from TPR advising you of the deadline and where to find the form. The Declaration of Compliance form is a secure, online form. You will need to register with Government Gateway before you can complete it.


What information do I need to complete the form?

If you have all the relevant information to hand it can take as little as 15 minutes to complete your the Declaration of Compliance. The information needed to complete the declaration is:

  • Government Gateway User ID
  • Letter code from TPR
  • Your contact details
  • Your relationship to the employer
  • Name of the employer
  • Employer contact details
  • Employer email address
  • Employer correspondence address
  • Type of pension scheme(s) used for Auto Enrolment (personal or occupational)
  • Employer pension scheme reference (EPSR).

Our Top Tips for the Declaration of Compliance Process

  • Make a note of all logins and passwords
  • Start your declaration before your staging date; you can save your progress and return at a later date
  • If postponement has been used for any staff, the declaration cannot be submitted until after the postponement period has ended
  • Save your declaration at regular intervals as the system will timeout after a short period of inactivity
  • Remember to select ‘submit’ at the end of the form to complete the process.

Any Questions? Need Help or Advice?

Automatic Enrolment and the Declaration of Compliance Process can seem complicated and can be time consuming. For help and advice, contact us or call us on 0121 422 0550.

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