Employer minimum contribution
Staff contribution
Total minimum contribution
Date
New rate: 6 April 2019 onwards
3%
5%
8%
Current rate: 6 April 2018 to 5 April 2019
2%
3%
5%
The Pensions Regulator has been and is still writing to all employers to remind them of their duties, however these communications only go to the employer, not to their staff.
If you haven’t yet communicated the changes to your workforce, there are letter templates provided on TPR’s website, if you wish to use.
TPR also advises that you check with your payroll software provider and pension provider to ensure plans are in place ahead of the changes on 6 April 2019.
Further information and advice on the changes depending on what type of pension scheme you have, can be found on TPR’s website.
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NOW: Pensions to overhaul its administration system 4 February 2019
Action taken by The Pensions Regulator (TPR) has resulted in the pension contributions of hundreds of thousands of people now being collected and invested.
In April 2016, an estimated £18 million of pensions contributions, affecting over 265,000 people, had not been collected by NOW: Pensions as a result of ongoing problems with the collection, and also with ensuring that the correct amounts were invested for members. As a result, TPR served the trustee and the trust manager with an Improvement Notice and Third Party Notice respectively.
TPR provided the trustee and trust manager of NOW: Pensions Ltd (NPL) with a deadline to fix serious and persistent administrative failings and are satisfied that they have since taken all reasonable steps to comply.
The trustee and NPL put systems and processes in place to monitor contributions, and TPR continues to work closely with the trustee to ensure that is correctly reporting the late collection of contributions from employers, as it is legally required to do.
Nicola Parish, TPR’s Executive Director of Frontline Regulation, said: “When we launched our investigation into NOW, the master trust had significant administration problems in the way it was handling data.
“In particular, its failure to collect contributions was causing problems for employers and the pension pots of members were not growing as they should have been. This was unacceptable.
“Pension schemes, including master trusts, should be in no doubt that we will act if we become concerned about the way they are being run. We will not accept failings that put members’ savings at risk.”
If you have concerns that a pension scheme is not being managed correctly, email wb@tpr.gov.uk to report the issues.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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