MPs want The Pensions Regulator to set out by 2013 how it will deal with small and medium-sized firms which fail to enrol workers into pension schemes.
In a new report into auto-enrolment, published last week, the work and pensions select committee says ensuring all firms offer staff the opportunity to enrol in a pension is “critical” to auto-enrolment success.
But it says relying on whistleblowers to report non-compliance has “inherent problems”, especially in very small firms where they will be easily identifiable. The report says: “We recommend by the end of 2013, TPR provides a written update on its plans for non-compliance.”
The report also says the Government should consider requiring providers to register with TPR or strengthening the criteria that firms wanting to provide auto-enrolment pensions have to meet if it is clear that some providers are not complying.