In a written statement, Pensions Minister, Guy Opperman, confirmed that, for tax year 2020-2021, the Automatic Enrolment earnings trigger will remain at £10,000, for the seventh year running.
Mr. Opperman also confirmed that there will be no changes to the lower and upper limit of the qualifying earnings band. He said:
“The main focus of this year’s annual review of the AE earnings trigger and qualifying earnings band (the AE thresholds) is to ensure the continued stability of the policy whilst learning from the April 2019 AE contribution rate increase. We also want to ensure that our approach continues to enable individuals, for whom it makes economic sense, to save towards their pensions whilst also ensuring affordability for employers and government. The review has concluded that the earnings trigger will remain at £10,000 and both the lower and upper earnings limits will continue to be aligned to the National Insurance Contribution threshold.” There have been numerous calls throughout the pensions industry for the auto-enrolment earnings trigger to be lowered to include those that are on a lower salary and people who work less hours, which appears to be predominantly women and those from ethnic minorities, according to the director of policy at The People’s Pension, Greg McClymont. He said that previous government analysis has shown that lowering the auto-enrolment earnings trigger to the national insurance threshold of just over £6,000 would help an additional 1.2 million people. He commented:
“A big majority of these people would be women, and a significant percentage from ethnic minorities, helping address stark gender and ethnicity pension gaps.”
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The Pension Regulator’s Automatic Enrolment webinar for business advisers 6 March 2020
As previously advised in the CIPP’s News Online, The Pensions Regulator (TPR) is running an Automatic Enrolment webinar on Monday 30 March at 2:30 pm.
Those interested in attending were asked to complete a survey to confirm which topics they would like to hear about on the webinar, to make it as beneficial for them as possible.
Following on from this, TPR advised that it has received an overwhelming response to the survey and now has a comprehensive picture of what advisers would like to hear about. The agenda has been assembled based on those results and is as follows:
Re-enrolment & re-declaration
• •
Employer ongoing duties
• Initial duties of new employers – from setting up a scheme, to factors in choosing the right scheme. Scheme rules and contribution rates • Live Q&A The webinar will consist of two sections – a 40 minute session to cover the areas laid out in the agenda and an additional 20 minute live Q&A session, in which attendees can ask any questions that they may have. To enrol on the webinar, please follow this link.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
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