Pensions Act 2008
What this means for your business
- Enforced by
- FCA
- Applies to
- United Kingdom
- On this page
- 6 compliance obligations, 5 practical guides across 4 topics
What you must do
6 compliance obligations under this legislation — 1 can result in imprisonment.
Appointments 1
Make sure your pension scheme order names the trustee corporation as trustee
If you set up a pension scheme for your staff, you must put a rule into the scheme order that the trustee corporation you created (under sectionāÆ75) will be the trustee when the scheme starts. The order can also give trustees powers to make rules, set limits on those powers and offer indemnity to trustees if you wish, but the key point is that the trustee corporation must be named as the trustee.
Management duties 2
Schedule automatic reāenrolment dates with required intervals
As an employer you must make sure that each employeeās automatic reāenrolment into the workplace pension is set at least three years after their original enrolment date, and you cannot set more than one reāenrolment date for any employee in any threeāyear period. Alternatively, you may follow the rule that the whole business does not have more than one reāenrolment date in any 2āyearā9āmonth period. This means you need to keep a clear schedule of enrolment and reāenrolment dates and check the timing limits regularly.
Set up and maintain member and employer consultation arrangements
If your company is a trustee of a pension scheme (or you sit on the trustee board), you must create a system for consulting scheme members and participating employers about how the scheme works, is developed and is changed. This includes establishing a membersā panel and an employersā panel and keeping those panels active.
Offences and prohibitions 3
Make recruitment statements linked to pension optāout
If you, as an employer, ask a job applicant or make a comment during recruitment that suggests their job offer may depend on whether they will optāout of automatic pension enrolment, you are committing an offence. This applies to any part of the recruitment process ā adverts, application forms, interviews, or job offers. A breach can lead to regulatory sanctions, including fines and possibly a custodial sentence.
Officer liable for corporation's pension offence
If your company breaches a pension duty under sectionāÆ45 and you, as a director, manager, secretary or other officer, gave consent, turned a blind eye, or were negligent, you are personally guilty of the same offence. You can be prosecuted and face the same penalties that would apply to the company.
Willfully fail to comply with automatic enrolment duties
2 years imprisonmentIf an employer deliberately does not meet its statutory duties to automatically enrol employees, automatically reāenrol them, or allow jobāholders to optāin, the employer commits a criminal offence. On conviction in the Crown Court the penalty can be up to two yearsā imprisonment, an unlimited fine, or both; on summary conviction the fine is limited to the statutory maximum.
Penalties for non-compliance
4 penalties under this legislation. 1 can result in imprisonment. 1 carry an unlimited fine.
Willfully fail to comply with automatic enrolment duties
Unlimited fine and/or 2 years imprisonment
Make recruitment statements linked to pension optāout
Penalty applies
Officer liable for corporation's pension offence
Penalty applies
Liability for pension compliance offences by partnerships or associations
Penalty applies
Practical guidance
Our guides explain how to comply with the requirements above.
Employment law for hospitality businesses
Tips and service charge distribution, DBS checks for staff working with children, workplace pensions, and employment law considerations specific to ā¦
Workplace pensions: your auto-enrolment duties
Your legal duties to automatically enrol eligible employees into a workplace pension scheme and contribute to their pension. Covers eligibility ā¦
Mandatory hiring requirements
Every employer obligation from pre-hire through the first month of employment. Covers right to work checks, written statements of particulars, ā¦
Before you hire your first employee
Everything you need to do before employing your first staff member.
Keep business records after closing
Record retention requirements that continue after your business closes. Covers how long to keep tax records, employment documents, contracts, and ā¦
Sections and provisions
167 classified provisions from this legislation.
Duties 5
Offences and penalties 12
- s.35 Compliance notices
- s.36 Third party compliance notices
- s.40 Fixed penalty notices
- s.41 Escalating penalty notices
- s.42 Penalty notices: recovery
- s.45 Offences of failing to comply
- s.46 Offences by bodies corporate
- s.47 Offences by partnerships and unincorporated associations
- s.50 Prohibited recruitment conduct
- s.51 Compliance notices
- s.52 Penalty notices
- s.53 Review of notices and references to First-tier Tribunal or Upper Tribunal
Powers 40
- s.8 Jobholder's right to opt out
- s.10 Information to be given to workers
- s.11 Information to be given to the Pensions Regulator
- s.12 Introduction of employers' duties
- s.14 Review of earnings trigger and qualifying earnings band
- s.15A Power to specify rounded figures
- s.15 Pay reference period
- s.16 Qualifying schemes
- s.22 Test scheme standard
- s.23A Alternative quality requirements for UK defined benefits schemes
- s.25 Quality requirement: non-UK occupational pension schemes
- s.28 Certification that quality requirement or alternative requirement is satisfied
- s.33 Deduction of contributions
- s.38 Calculation and payment of contributions
- s.43 Review of notices
- s.60 Requirement to keep records
- s.71 Procedure for scheme orders
- s.72 Procedure for rules
- s.74 Review
- s.76 Functions
- ... and 20 more powers
Definitions 20
- s.2 Continuity of scheme membership
- s.3 Automatic enrolment earnings
- s.13 Qualifying earnings
- s.20 Quality requirement: UK money purchase schemes
- s.21 Quality requirement: UK defined benefits schemes
- s.23 Test scheme
- s.24 Quality requirement: UK hybrid schemes
- s.26 Quality requirement: UK personal pension schemes shortfall
- s.37 Unpaid contributions notices Due date
- s.39 Meaning of ārelevant contributionsā
- s.54 Inducements relevant scheme
- s.73 Application of enactments
- s.77 Application of pension trustee legislation legislation
- s.78 Interpretation of Chapter employers' panel members' panel
- s.88 āEmployerā, āworkerā and related expressions Contract of employment Worker
- s.99A Money purchase benefits: supplementary
- s.99 Interpretation of Part average salary benefits defined benefits scheme enrolment duty
- s.108 Interpretation the Board PPF compensation the pension compensation provisions
- s.141 Pre-1948 insurance: supplementary period of pre-1948 insurance
- Schedule 5 Pension compensation payable on discharge of pension compensation credit the revaluation period the revaluation percentage
Exemptions 14
- s.4 Postponement or disapplication of automatic enrolment
- s.5 Automatic re-enrolment
- s.7 Jobholder's right to opt in
- s.9 Workers without qualifying earnings
- s.27 Quality requirement: other personal pension schemes
- s.30 Transitional period for defined benefits and hybrid schemes
- s.32 Power of trustees or managers to modify by resolution
- s.55 The right not to suffer detriment
- s.58 Restrictions on agreements to limit operation of this Part
- s.62 Disclosure of tax information etc
- s.130 Payments to employers
- s.139 Polish Resettlement Act 1947: effect of residence in Poland
- s.143 Orders and regulations
- s.144 Orders and regulations: supplementary