Bribes over new pensions outlawed
The Pensions Regulator (TPR) has reminded employers about the laws related to inducing staff to opt out of retirement savings post-auto-enrolment.
The law prohibiting inducements comes into effect on 1 July, although employers’ staging dates are spread out over several years.
The regulator defines an inducement as any action with the sole or main purpose to cause an employee to opt out.
Action will be taken by the regulator where it sees evidence of inducement. This will include an initial fine of up to £400, with escalating penalties of up to £10,000 a day for larger employers.
Toby Christie, employer compliance policy manager at TPR, said: “Automatic-enrolment will make saving for retirement the default position for millions of people in the UK.
“Individuals will be able to opt out of a scheme, but the decision to stop saving for retirement is a major step and should be the individual’s own."