Pension Rules for Safeguarding Workers – the new law has come into effect

new pnalty regime now in force for NEST pension aut-enrollment

Workplace pensions reform law came into effect from 1 July 2012, marking the start of the new duties which will eventually see employers automatically enrol certain workers, and enrol those workers who choose to opt in, into pension schemes.

The new law places requirements on employers not to:

1. induce workers to opt out or cease their membership of the qualifying pension scheme

2. indicate during a recruitment process that a worker’s decision to opt out of automatic enrolment will affect the outcome

3. do, or fail to do, something which results in the worker ceasing to be in active membership whilst still employed by the employer.

Such behaviour could lead to enforcement action resulting in monetary penalties being imposed as shown below.

Penalty notices:
1-4 employees – £1,000
5-49 employees – £1,500
50-249 emplyees – £2,500
250+ – £5,000

For further information or to download the compliance and enforcement quick guide, strategy and policy please visit the regulators at

If in any doubt about the new pension rules and auro-enrollment, please contact Malcolm Smith from our Chapel Court Wealth Planning arm via your local office.

Source: The Pensions Regulator

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