Employers expected to continue to meet AE duties amid COVID-19 pandemic

The Pensions Regulator (TPR) has said that it expected employers to “continue to meet” their automatic enrolment (AE) duties amid the ongoing coronavirus pandemic.

Employers are still currently required to pay employee contributions, but the regulator noted that it was “closely monitoring” the ongoing situation and it will “act in line with government guidelines”.

Although the government has not made an official statement on whether it would consider pausing AE pension contributions, it suggested that it may be a possibility.

When asked whether it would allow a suspension of contributions, the government said that it would “do whatever it takes to protect businesses and employers from the effects of the coronavirus”.

“We recognise the difficulties they face and will help support businesses of all sizes so they can continue operating during these unprecedented times,” it added.

The Financial Times also reported that employers have been contacting the government to ask whether they will be allowed to pause or reduce the pension contributions they are paying for their workers.

TPR has already urged trustees to have appropriate contingency planning in place and to be “alive to risks” in the wake of the coronavirus.

It said that it will continue to monitor the situation and continue to provide schemes and trustees with the latest information to help minimise any impact on savers.

    Share Story:

Recent Stories

Climate Investing
Laura Blows speaks to Aled Jones, Head of Sustainable Investing for Europe at FTSE Russell, and Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board, about the role of climate investing within a pension fund portfolio.

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

De-risking options for pension schemes
In this latest Pensions Age podcast, Linklaters' Sarah Parkin talks to Laura Blows about the wide range of choice available to pensions schemes for the partial, or full, removal of their risks

Risk transfer opportunities
Laura Blows speaks to Lisa Purdy, Head of Fiduciary Distribution at Legal & General Investment Management and Gavin Smith, Pricing and Execution Director - UK PRT at Legal & General, about the impact of the recent market volatility on the bulk annuity and risk transfer market and the potential opportunities for the future

Bulk annuities during coronavirus
Laura Blows speaks to Just business development manager Prash Mehta about the impact of coronavirus on transactions