There’s no doubt about it…

Large employers have, on the whole, implemented their new pension duties with success.

They’ve consulted, worked to ensure either their existing systems are fit for purpose or alternatively bringing new systems in to fill the gap.

They’ve project managed, collaborated and ensured that (and in some occasions) all the constituent parts of quite complex businesses worked together to ensure they complied with their duties.

However with all the stories of success there were a number of whispers of some relatively large employers not managing to meet their obligations within the established timescales.

However yesterday was the first time in it’s history the Pension Regulator decided to release a formal notice of this non compliance.

The company in question, the large furniture retailer, Dunelm.

Whilst fines were not levied on this occasion (although Dunelm did find themselves liable for an additional £108,000 in unpaid pension contributions) the comments from both the regulators notice and the comments made in the press were interesting.

In the notice from the regulator (you can find this here) a number of important points are highlighted…

Firstly the number of times the laws which govern these duties were mentioned in the press release….

A total of 5 times in a 4 page document.

Whilst it’s not unusual for an official body to mention the legal framework it’s powers are based on one clear message I’d take from this document, if I were an employer not complying with their duties would be this….

Automatic Enrolment is enshrined in law. It’s been that way since 2004 and subsequently amended, added to and refined in 2008. Therefore the message seems clear…

If employers don’t comply they are breaking the law.

One of the big issues and one of the reasons Dunelm didn’t comply in time was the quality of the employee information they had.

Data quality is something we’ve definitely experienced whilst working with our clients. A lot of employers assumed that the fact that they had to cleanse their data to operate PAYE in real time back in April 2013 meant that their data is ready to meet their automatic enrolment obligations.

The reality is that employers need to clean their data ready for their duties….and start as soon as possible.

However the most interesting thing is that this is the first time the regulator has published the fact that it has felt the need to publish that it’s used regulatory powers.

Whilst it’s highly likely that behind the scenes this is far from the only case where the regulator has done this it shows that, despite what some people assume, the pensions regulator will take action when necessary.

Also, I wouldn’t be surprised if you start to see more of these type of notices and the notices potentially getting more severe in nature.

In their release and comments made in the financial press one thing is clear.

The pensions regulator has teeth and whilst reticent, it ain’t afraid to use them.