An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.
The requirements to be a ROPS changed from 6 April 2017 - find out about the changes for ROPS requirements.
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£37 billion in pension funds currently unclaimed 8 January 2020
Research suggests that there is £37 billion in pension funds that is currently unclaimed, which means that nearly a quarter of adults in the UK who are under the age of 55 will miss out on some of their retirement income.
The study from advice firm, Profile Pensions suggests that there are approximately 1.6 million pension pots missing, each holding an average value of £23,000. Out of 2,096 under 55s included in the research, 24% confirmed that they had lost track of at least one of their pensions, with higher response rates (29%) observed in individuals aged between 25 and 34. A further 10% confessed that they would be uncertain about their ability to locate all of their pension pots. Studies such as these highlight the importance of the incoming pensions dashboards, as they will serve to minimise the issue of missing pension pots and will display all of an individual’s pensions and their corresponding figures in one place, alongside information relating to their state pension. This should allow workers to prepare accordingly for their futures and to give them some idea of what their retirement will look like and how much they will have to spend. The most common scenario in which pension pots are lost is when people move home but fail to notify their pension provider. This means that providers cannot supply pension holders with pension documents and annual statements. Government research shows that the average number of times that an individual moves to a new house is eight in a lifetime – a figure that is only expected to grow as more and more people choose to rent instead of buying properties. Auto-enrolment means that workers can potentially hold pensions with every company they have worked for, and with people working an average of 11 jobs during their lives, that is a substantial number of pension pots to monitor.
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Pensions Bill revisited by parliament 9 January 2020
The Pensions Bill, first referenced in the initial Queen’s Speech held in October 2019, and reiterated by the Queen in December, has been reintroduced into parliament, following its delay as a result of the general election.
As parliament reopened following the Christmas break, the policy was placed in the House of Lords, and includes plans for the implementation of pensions dashboards, strengthened powers for The Pensions Regulator (TPR) and the introduction of collective defined contribution schemes.
Prior to the election, the Pensions Bill had already attracted cross-party support and it was widely anticipated that it would be revisited once the election had passed.
The Financial Adviser reported that the chief executive of TPR, Charles Counsell, pledged his support for the Pensions Bill and was pleased that it was being reintroduced so swiftly. He confirmed that he was looking forward to working alongside the Department for Work and Pensions (DWP) as the bill progressed. He commented that the new bill would mean that the regulator could be “clearer, quicker and tougher” and that it would have more power to reprimand and punish any “risky and reckless” behaviour. The new powers that will be awarded to TPR within the bill include making it a criminal offence to behave in a knowingly reckless manner, which can carry a custodial sentence of up to seven years for the responsible bosses. TPR can also gather information about schemes within a timely manner so that it can recover any damages for members of pension schemes when things are not done correctly, so that they are not negatively impacted.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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