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Increase in automatic enrolment contributions from 6 April 2019 4 February 2019
The Pensions Regulator has recently written to employers to remind them that the final stage of phasing as a result of the roll out of Automatic Enrolment will occur from 6 April 2019.
Pension scheme rules continue to Rule and also to provide the detail necessary to help employers and scheme members understand the contributions payable, however if the scheme is being used for automatic enrolment then there are minimum contributions that must be made – from 6 April this will be a total contribution of 8% of qualifying earnings with a minimum of 3% being paid by the employer – there is no legal minimum contribution for the employee but their contribution should be sufficient to ensure that the 8% minimum contribution is achieved. This increase marks a milestone in the many phases and stages that began in 2012 and have been necessary to roll out automatic enrolment. The Pension Regulator confirm that almost 10 million workers are now able to save more due to the successful roll out of automatic enrolment.
CIPP comment
Automatic enrolment is hailed as been a successfully delivered policy due in no small measure to the extremely hard work of a number of payroll and pensions professionals. But this marks only the start in workplace saving, ongoing duties are just that - ongoing - and further developments will continue to be rolled out in the future.
As ever if you have any thoughts, opin i ons or views on this and any other policy impacting payroll and pensions administration please contact policy@cipp.org.uk
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TPR Quarterly Bulletin 18 February 2019
The Compliance and enforcement Quarterly bulletin spanning the period October – December 2018 has been published by the Pensions Regulator.
Following on from the news this week that 10 million people are now newly saving or saving more into a workplace pensions, the bulletin serves to remind us of the range of powers that the TPR have and the actions they will take to protect savers.
Director of Automatic Enrolment Darren Ryder said:
“More than 1.4 million employers have done the right thing for their staff and we’re delighted so many now have the opportunity to save for later in life. But we are not complacent and will continue to ensure employers and their advisers meet their responsibilities.
“We will not tolerate behaviour by employers or their advisers that sees pension savers short changed by not being put into a scheme.”
Executive Director of Frontline Regulation Nicola Parish added:
“This report highlights the many wide ranging powers and ways of working that we are using to protect savers – from helping trustees deal more robustly with employers, to taking swift court action when we suspect members’ savings are at imminent risk. Our clearer, quicker and tougher approach is having a real impact.”
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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