The Pensions Regulator (TPR) has warned employers not to fall for fake certificates offering “auto-enrolment exemption”, which purport to show they are not subject to workplace pension duties.
TPR said it was investigating at least one company offering the so-called ‘Certificates of Auto-Enrolment Exemption’. It added employers had been charged £58 for the certificates that were “worthless”, since no such documents had been produced or accepted by TPR as evidence of auto-enrolment exemption.
The pensions watchdog said a number of employers had been persuaded to pay for the documents, with scammers claiming the paperwork meant the holders do not have any workplace pension duties.
TPR stressed every individual or organisation in the UK that employs at least one person has auto-enrolment duties, meaning they must enrol their staff in a workplace pension and make regular contributions. In some cases, employers need to inform TPR if they do not have any staff who qualify for auto-enrolment.
As things stand, it is only the self-employed, those earning less than £10,000 a year and those who do not meet the threshold under the qualifying earnings calculation who do not qualify for auto-enrolment. There have, however, been calls for the government to widen inclusion in the scheme.
TPR said it had no evidence employers were buying the fake documents with the intention of committing any offences.
It did state, however, that any employers who had failed to comply with their duties in the belief the documents gave them any exemption left themselves open to being fined and could be committing an offence.
The regulator urged anyone offered the chance to buy a certificate of exemption, or any similar-sounding document, to decline and contact it immediately.
TPR noted the vast majority of employers who had reached their deadline for compliance had met the auto-enrolment requirements. It added that, over the next six months, up to a further 500,000 small and micro employers would have to become compliant before their own deadlines.
Employers wanting to know their responsibilities and what they must do in the auto-enrolment processcan use the Duties Checker on the TPR’s website.
TPR auto-enrolment director Darren Ryder (pictured) acknowledged most independent advisers offered legitimate services to assist employers with their workplace pension duties but urged employers to be vigilant when seeking help or advice about auto-enrolment.
He said: “We will work to root out the small number of organisations that are looking to prey on hard-working employers, abusing their trust and tricking them out of their money.”
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