AC Precision Engineering Limited v The Pensions Regulator
[2024] UKFTT 63 (GRC)
Ashley Kevin Purdy v The Pensions Regulator
5 January 2024
[2024] UKFTT 5 (GRC)
First-tier Tribunal
An employer got fined £400 for missing a paperwork deadline related to workplace pensions. He said the post was unreliable, but the judge wasn't convinced because he received the fine itself. The fine stood.
Key Facts
- •Ashley Kevin Purdy (the Employer) challenged a £400 fixed penalty notice (FPN) issued by the Pensions Regulator for failing to comply with a Compliance Notice.
- •The FPN was issued under s 40 of the Pensions Act 2008 for non-compliance with the re-declaration of compliance deadline.
- •The Employer's staging date was 13 January 2020. The initial Declaration of Compliance was submitted on time, but the re-declaration was late.
- •The Employer claimed postal issues and lack of reminders as reasons for non-compliance.
- •The Regulator argued that the notices were sent to the correct address and a reminder email was sent.
Legal Principles
Pensions Act 2008 imposes obligations on employers for automatic enrolment.
Pensions Act 2008
The Pensions Regulator can issue Compliance Notices and FPNs for non-compliance.
Pensions Act 2008
Employers must provide a Declaration of Compliance and re-declarations every three years.
The Employer’s Duties (Registration and Compliance) Regulations 2010
A person issued with an FPN can refer the matter to the Tribunal after a review by the Regulator.
Pensions Act 2008
The Tribunal decides on the appropriate action, confirming, varying, or revoking the FPN, and remits the matter to the Regulator.
Pensions Act 2008
A reasonable excuse is needed to avoid an FPN.
Case Law
Presumption of service applies unless rebutted with evidence.
Interpretation Act 1978, section 7; Pensions Act 2004, section 303
Outcomes
The reference was dismissed.
The Employer did not provide a reasonable excuse for non-compliance. The Tribunal found that the Compliance Notice was likely received, despite the Employer's claims of postal issues. The fact that the FPN was received supports this.
The Penalty Notice was confirmed.
The Tribunal lacked the power to reduce the prescribed penalty.
The matter was remitted to the Regulator.
Standard procedure following the Tribunal's decision.