UK Act of Parliament 2008 United Kingdom

Pensions Act 2008

What this means for your business

6 obligations
4 penalties
1 can imprison
14 guides
Enforced by
TPR
Applies to
United Kingdom
On this page
6 compliance obligations, 14 practical guides across 4 topics
Read full text on legislation.gov.uk

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 sectionā€Æ75) 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.

Employer s.68 TPR When establishing a pension scheme for employees

Management duties 2

Schedule automatic reā€‘enrolment dates with required intervals

As an employer you must make sure that each employeeā€™s automatic reā€‘enrolment into the workplace pension is set at least three years after their original enrolment date, and you cannot set more than one reā€‘enrolment date for any employee in any threeā€‘year period. Alternatively, you may follow the rule that the whole business does not have more than one reā€‘enrolment date in any 2ā€‘yearā€‘9ā€‘month period. This means you need to keep a clear schedule of enrolment and reā€‘enrolment dates and check the timing limits regularly.

Employer s.6 TPR Applies to every jobholder who is automatically enrolled in a qualifying occupational ā€¦

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.

Employer s.69 TPR A pension scheme is established by an order under section 67

Offences and prohibitions 3

Make recruitment statements linked to pension optā€‘out

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 optā€‘out 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.

Employer s.50 TPR

Officer liable for corporation's pension offence

If your company breaches a pension duty under sectionā€Æ45 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.

Director/Officer s.46 TPR

Willfully fail to comply with automatic enrolment duties

2 years imprisonment

If an employer deliberately does not meet its statutory duties to automatically enrol employees, automatically reā€‘enrol them, or allow jobā€‘holders to optā€‘in, 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.

Employer s.45 TPR

Penalties for non-compliance

4 penalties under this legislation. 1 can result in imprisonment. 1 carry an unlimited fine.

Prison risk

Willfully fail to comply with automatic enrolment duties

Unlimited fine and/or 2 years imprisonment

Either way s.45 Penalises: Willfully fail to comply with automatic enrolment duties
Fine

Make recruitment statements linked to pension optā€‘out

Penalty applies

Either way s.50 Penalises: Make recruitment statements linked to pension optā€‘out
Fine

Officer liable for corporation's pension offence

Penalty applies

s.46 Penalises: Officer liable for corporation's pension offence
Fine

Liability for pension compliance offences by partnerships or associations

Penalty applies

s.47 Penalises: Willfully fail to comply with automatic enrolment duties

Practical guidance

Our guides explain how to comply with the requirements above.

Tax & Finance 8

Workplace pensions: your auto-enrolment duties

Your legal duties to automatically enrol eligible employees into a workplace pension scheme and contribute to their pension. ā€¦

Auto-enrolment penalties and TPR enforcement

Reference guide to The Pensions Regulator enforcement powers for auto-enrolment. Covers the enforcement ladder from compliance notices through ā€¦

Auto-enrolment compliance checklist

Verify your auto-enrolment setup meets all requirements from The Pensions Regulator. Covers scheme selection, staff assessment, enrolment, contributions, ā€¦

Complete your declaration of compliance

How to complete the declaration of compliance with The Pensions Regulator, confirming you have met your auto-enrolment duties. ā€¦

Choose a workplace pension scheme

How to select a qualifying pension scheme for auto-enrolment. Compares master trusts (NEST, People's Pension), group personal pensions, ā€¦

Worker categories for auto-enrolment

Explains the three worker categories for auto-enrolment ā€” eligible jobholder, non-eligible jobholder, and entitled worker ā€” and what ā€¦

Re-enrolment: your three-year duties

How to manage the three-year re-enrolment cycle for auto-enrolment. Covers calculating your re-enrolment date, assessing opted-out workers, the ā€¦

Salary sacrifice pension arrangements

How salary sacrifice works for pension contributions. Covers NI savings for employer and employee, contractual requirements, interaction with ā€¦

Sections and provisions

167 classified provisions from this legislation.

5 Duties 12 Offences and penalties 40 Powers 20 Definitions 13 Exemptions

Duties 5

  • Schedule 3 Consolidation of additional pension entitlement of the pensioner
  • s.6 Timing of automatic re-enrolment
  • s.67 Duty to establish a pension scheme The scheme administrator
  • s.68 Scheme orders: general that they
  • s.69 Consultation of members and employers

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 ā€œrelevant 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 ā€œEmployerā€, ā€œworkerā€ and related expressions Contract of employment Worker
  • s.99 Interpretation of Part average salary benefits defined benefits scheme enrolment duty
  • s.99A Money purchase benefits: supplementary
  • 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 13

  • 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.143 Orders and regulations
  • s.144 Orders and regulations: supplementary