The unknown territory of auto-enrolment enforcement

From October 2012, the Pensions Regulator (TPR) faces the unenviable but crucial task of enforcing the law on automatic enrolment. Over time, most workers will become entitled to 3% of their salary (within a restricted band of earnings) paid into a pension pot by their employer. Yet the new law will be meaningless for many workers if employers persistently fail to comply with this obligation.

The compliance and enforcement strategy published by TPR last month seems robust, but enforcement of this nature, and on this scale, is largely unknown territory for regulators, and it remains to be seen how tough sanctions will prove to be in practice.

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Image: David Spender