Staying compliant with auto-enrolment during Covid-19
It is pleasing to see The Pensions Regulator acknowledge the considerable strain that the Covid-19 pandemic is placing on businesses and cash-flow.
As well as seeing the 3% Employer pension contribution being deemed as an eligible claim within the Furlough rules (worth up to £75 p.m.in pension contributions for an employee), we have also seen a softening of the enforcement rules on auto-enrolment contributions.
The expectation remains that all due contributions are made, however the 90 day reporting rule on missed contributions has been extended to 150 days. In addition to this, with careful liaison with both The Pension Regulator and your pension scheme provider, it may be a possible to arrange a ‘pension contribution holiday’ with a greater degree of flexibility over the eventual payment plan.
For any Employer wishing to take advantage of this to ease cash-flow, it is important to ensure that both your pension scheme provider and The Pensions Regulator are clear with any contribution holiday proposal. The Wealth Management team at G+E would be able to advise you on this and liaise with your pension scheme provider and The Pensions Regulator on your behalf to ensure a suitable plan is put in place.