They have contacted circa 1,200 organisations with a polite reminder that they should be performing annual reviews on the data that they hold, or they could potentially face considerable fines, with the maximum penalty encompassing £50,000.
TRP’s executive director of regulatory policy, David Fairs, stated that “accurate record-keeping is vital to good governance and administration” and that “requiring trustees to carry out reviews will force them to look closely at their data.”
TPR state that the accuracy of information held regarding various pension schemes and their members has a direct impact on how correctly pensions are handled and therefore the fundamental success of a scheme relies heavily on holding correct data.
Accurate record-keeping will also be vital for the pensions dashboards so that savers can see exactly what pension savings they have and consider whether they need to put more away for later life.
As a direct response to checking the data they hold, if there are any inconsistencies or inaccurate items, Trustees will be responsible for putting plans into place to remedy the problem. The overall aim of TPR in requesting regimented reporting is to ensure governance and compliancy across all pension schemes.
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Potential four percent uplift to state pension from April 2020 8 October 2019
The full state pension is expected to receive a boost from £168.60 as it currently stands to £175.35 per week, with the basic state pension rising from £129.20 per week to £134.35 from April 2020 onwards. This reflects a four percent increase to the state pension prompted by figures relating to earning growth published by the Office for National Statistics. The earnings growth figure is substantially higher than price inflation or the base figure 2.5%, which all form part of the ‘triple lock’ calculation system. Essentially, this calculation means that the state pension is uplifted by whichever is highest of the three. This system was introduced back in 2010 and has ensured that the weekly state pension has increased significantly since then. Speaking to Pensions Age, Steven Cameron, director of Aegon pensions state “based on the latest earnings growth figures, it looks like state pensions can look forward to an inflation busting four percent increase”. He also warned that, although this is positive news for pensioners, the hike would be of considerable cost as pensions are currently taken from national insurance contributions of those currently classed as employees.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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