Pension Regulator – appealing and reviewing penalties
The Pensions Regulator has the power to impose significant penalties for breach of auto-enrolment obligations. Typically, a fixed penalty will only be £400 but escalating penalties can range from £50 to £10,000 per day so a significant fine can be incurred very quickly.
These penalties will only be imposed after a compliance notice or unpaid contribution notice has been sent by the Pensions Regulator. The best way to avoid a fine is to comply with these notices and to let the Pensions Regulator know that you have done so and provide them with evidence of this.
However, we know that sometimes these notices don’t get actioned as quickly as they should or sometimes are just never received and a penalty is imposed.
What to do if you get a penalty notice
If you do get a penalty notice, then you need to:
- Ensure that you are compliant, that the Pensions Regulator knows this and that you’ve provided evidence of this to them; and
- Send a written application for review to the Pensions Regulator within 28 days of the date of the penalty notice.
What to do if you’ve missed the 28-day deadline for a review
The Pensions Regulator does have the power to conduct a review even if you’ve missed the 28-day deadline so it’s still worth asking them to conduct a review. Sometimes they will refuse to carry out a review after the deadline has passed.
We’ve had success in getting penalties revoked where notices simply haven’t been received or where they have been deliberately hidden by employees.
Appeals if the Pensions Regulator refuses to revoke the penalty
You can appeal to the First-tier Tribunal if the Pensions Regulator refuses to revoke the penalty. This needs to be done within 28 days of a review being carried out.
If the Pensions Regulator has refused to carry out a review it may not be possible to appeal but if the reason that the deadline has been missed is that the penalty notice wasn’t received, then the First-tier Tribunal may still allow the appeal to go ahead.
How can we help
We have plenty of experience in helping employers prepare reviews and appeals and liaising with both the Pensions Regulator and the First-tier Tribunal. Our advice can help you to put in the strongest possible submissions and we have a good success rate in getting penalties over-turned.
You can read more about how we have helped employers get penalties revoked in our case studies.
For more information about how we can help, please contact Doug Mullen or Lauren Broderick.
