The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
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Do you know who is excluded from all automatic enrolment duties? 1 March 2017
Certain people are completely excluded from the employer’s automatic enrolment duties.
These include people such as directors who are not working under an employment contract, trustees - and directors who are the only employee in their company.
If all of an employer’s staff are excluded, then the employer will have no AE duties and, if they have received a letter from The Pensions Regulator (TPR) with a staging date, they should go to TPR’s website to tell them that they are ‘ not an employer ’. However, for other members of staff who are not excluded, employers may sometimes have an option to choose not to automatically enrol them. This option applies to anyone in their notice period, a director working under an employment contract , those with HMRC tax protection, non-salaried LLP partners, as well as those who have left their employer’s qualifying pension scheme in the last 12 months (those who left over 12 months ago should not be assessed until the employer’s next re-enrolment date).
If the employer does choose not to automatically enrol one of these staff, they still retain the right to opt in or join a pension (except those in their notice period).
Even if an employer can choose not to automatically enrol all of their staff, the employer will still have other AE duties, such as sending out letters to staff and they will still need to complete their Declaration of Compliance.
Further information
Everything you need to know about an employer’s duties under automatic enrolment can be found on TPR’s website . Also see TPR’s full list of events activity – speaking engagements, exhibitions and webinars. You can also request an expert speaker for your own event.
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NEST: Evolving for the Future – government response 3 March 2017
The government has published its response to the Call for Evidence on NEST: Evolving for the Future.
Background The National Employment Savings Trust (NEST), a trust based defined contribution pension scheme, was established in 2010 to support the introduction of automatic enrolment. Since the original policy framework for NEST was developed, there have been significant changes in the pensions landscape. The pension freedoms introduced by the Government in 2015 have enabled a greater choice and flexibility in how and when people use their defined contribution pension savings. Alongside this, attitudes towards pension saving are changing, in part due to the shift towards mass market defined contribution pension provision. More people are working flexibly in a more gradual transition to retirement.
For the pensions industry this means that new, innovative retirement solutions are needed that will meet consumers’ needs both whilst they are working and saving, and when they wish to access some or all of their savings.
On 7 July 2016, the Government published a Call for Evidence paper “ NEST: Evolving for the future ”. The Call for Evidence closed on 5 October 2016 and sought evidence and views from a wide range of stakeholders on:
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