Thought / 24 Jan 2018

Why is AE auditing so important?

There's no room for complacency

Automatic enrolment has been with us for a while now, and so we know what we’re doing…don’t we? Well, our experience has shown that most of the time we do, but there is no room for complacency. We know that a number of ‘tweaks’ to the regulations could easily be missed.

AE software being updated and changes to payroll providers as well as HR and payroll staff are all areas of risk. This means that your AE processes may not be working as efficiently as they could be, or could potentially even in breach!

Things can be missed

Recently, the importance of regular AE auditing came to light. A new payroll administrator was trying to streamline her processes and she could see that since she started her job, every new member of staff was assessed and everyone was enrolled. She decided that the assessment was a waste of time so she just stopped, but no one was made aware of this change. She continued to enroll everyone in the pension whatever their circumstance. Once conducted, the audit uncovered this and found that 14 members were enrolled in error.

Other problems with record keeping, statutory communications and certification can be identified through the audit process and we recommend that this is undertaken around every three years.

Sue Pemberton

Head of DC Consulting and Technology


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