Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • November 2015
11

Volume of small employers will create 'significant pressures' on operations

Open-access content Wednesday 4th November 2015

Automatic enrolment has been successful, but challenges remain with the volume of smaller employers who have yet to enrol staff into the scheme, the National Audit Office (NAO) has said.

2

In the report Automatic enrolment for workplace pensions, NAO said the increase in the number of employers would place significant pressure on both The Pensions Regulator (TPR) and the National Employment Savings Trust (NEST) in aspects such as ensuring compliance and processing transfers.  

NAO also said smaller employers were expected to have different administrative requirements and responses to automatic enrolment. There would therefore be greater operational challenges as a result of the increasing number of smaller employers.

Based on figures provided by TPR, there are currently 1.8 million of employers expected to comply with automatic enrolment duties by 2018, as opposed to the 1.3 million originally estimated. 

Frank Field, chair of the Commons Work and Pensions Committee, said: "Small and micro employers face very different challenges to the larger employers that have already enrolled. We will consider whether enough has been done to support smaller employers with their obligations, anticipate potential challenges for these employers and make recommendations for improvement of the process."

Morten Nilsson, CEO of NOW: Pensions said: "These smaller employers are fundamentally different to those that have gone before them. Most do not have any in-house pensions expertise and they are less likely to have the help of an expert adviser. 

"Leaving auto-enrolment late puts increased pressure on both the employer and the provider so TPR and DWP [Department for Work and Pensions] need to continue to do all they can to push importance of planning ahead."

The report also found opt-out rates had been between 8% and 14%, "much lower than expected" than the original estimate of 28%.

NAO also said between October 2012 and August 2015, 58,000 employers complied with auto-enrolment duties, with 5.4 million people going into the scheme.  

This article appeared in our November 2015 issue of The Actuary.
Click here to view this issue
Filed in:
11
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Associate Consultant (UK-wide)

England, Manchester, Greater Manchester / England, West Midlands, Birmingham / England, London
£35000 - £53500 per annum + DOE + bonus + benefits
Reference
120865

Origination/ Pricing Analyst (Bulk purchase annuities)

London, England / London, City of London, England
£55000 - £75000 per annum + DOE + bonus + benefits
Reference
120864

Covenant Consultant

Leeds
£60-80k plus bonus and benefits
Reference
120863
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200