1. The first will target individuals who wilfully or recklessly mishandle pension schemes, endangering workers’ pensions, by such things as chronic mismanagement of a business; or allowing huge unsustainable deficits to build up; or taking huge investment risks; or a combination thereof. A new custodial sentence of up to seven years’ imprisonment or an unlimited fine for this offence will be introduced. This brings the punishment in line with similar offences in financial services. 2. The second, which will attract an unlimited fine, will target individuals who fail to comply with a Contribution Notice, which is issued by The Pensions Regulator requiring a specified amount of money to be paid into the pension scheme by that individual. A new civil penalty of up to £1 million for this offence will also be introduced.
Commenting on the announcement regarding new powers for The Pensions Regulator (TPR), Nicola Parish, Executive Director for Frontline Regulation at TPR, said:
“We welcome the proposed new powers which, as a package, would allow us to identify potential problems earlier and take more effective action.
The vast majority of scheme sponsors and trustees already do the right thing and we will be helping them further by delivering clearer funding standards and a revised Defined Benefit (DB) Code of Practice.
Our new powers will act as a powerful deterrent against the poor treatment of pension schemes and help us in protecting members.
We are working closely with government to ensure that the new legislation is effective and works in practice.”
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Countdown bulletin 42 14 February 2019
This publication provides important guidance and updates to pension scheme administrators about the end of contracting-out and includes information about deficit schemes and surplus schemes.
Although contracting-out came to an end in April 2016, schemes are still submitting termination and transfer notices with end dates on or after 6 April 2016.
The National Insurance Services to Pensions Industry (NISPI) countdown bulletins provide additional guidance for pension scheme administrators to enable them to make sure all individuals contracted out pension rights are secured correctly.
Countdown bulletin 42 – February 2019 includes further important information and dates on scheme financial reconciliation.
Previous editions of the Countdown Bulletin are also available on GOV.UK.
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Pension schemes newsletter 107 – February 2019 28 February 2019
This latest edition includes a reminder that if you are responsible for a Master Trust and you’re planning to apply to The Pensions Regulator (TPR) for authorisation, you must do this by 31 March 2019 so your scheme can continue to operate.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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