The Pensions Regulator expects to see a significant increase in the use of its statutory powers for AE non-compliance as small employers reach their staging dates.

Speaking at the NAPF annual conference in Liverpool, TPR chair Mark Boyle said more than one and a half million employers are due to stage between now and 2018, and compliance notices and fixed and escalating penalties are likely to be used.

“As we deal with smaller employers, we will see more who, despite our message to prepare early, leave it too late or do not comply at all. This type of non-compliance is not acceptable. That’s why we have been given these powers and we will use them, where appropriate.”

Boyle said the Regulator is to publish new guidance next year to help trustees of defined contribution schemes navigate their way through the recent government pension changes.

Boyle emphasised that the guidance will cover areas such as minimum governance standards, charge controls and changes to decumulation.

“I’m acutely aware of the amount of change that the industry is dealing with,” he commented.

“We are working with the government, the FCA and the wider industry to facilitate this ambitious programme of reform.

“We will be providing guidance in the New Year to help trustees through the changes once the detail of the new provisions is certain. In the meantime we will continue to regulate against our DC code and will be updating it to reflect changes in legislation.”

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