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Tribunal varies ‘disproportionate’ escalating penalty issued by the Pensions Regulator (Cambridge Rare Books Ltd v Pensions Regulator)

Pensions analysis: The director of Cambridge Rare Books Ltd (‘the Employer’) referred penalties issued by The Pensions Regulator (‘the Regulator’) to the First Tier Tribunal (‘the FTT’) and successfully obtained variation of an Escalating Penalty Notice because the FTT found it to be ‘not reasonable and disproportionate’. However, the Employer failed to persuade the FTT to dismiss the initial Fixed Penalty Notice, which was upheld. The Employer’s director had been seriously unwell and between April 2023 and July 2023 failed to comply with his pensions scheme contribution obligations under the Pensions Act 2008. The Employer missed three deadlines imposed by the Regulator before referring the matter to the FTT. The FTT placed considerable weight on the Employer’s proposal to pay the unpaid contributions in monthly instalments to remedy the default when coming to its decision. The FTT held it was disproportionate to impose a deadline that ignored a reasonable proposal from the Employer to remedy...

The full article can be found here.

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