The Chartered Institute of Payroll Professionals
News On Line
21 March 2022
Automatic Enrolment duties are extremely important within payroll and pension departments. Not receiving communications from The Pensions Regulator (TPR) could affect your ability to remain compliant.
That’s why TPR are encouraging employers to use their ‘ nominate a contact ’ form to ensure they have the most up to date employer and additional contacts. These contacts will receive correspondence on complying with legal duties and additional task-specific emails.
If you have changes offices, or are no working remotely, it is essential that you let TPR know so you can continue to receive important letters and emails.
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A new type of occupational pension scheme authorised to operate in UK 14 March 2022
New legislation has enabled Collective Money Purchase (CMP) schemes to apply to The Pensions Regulator for authorisation to operate in Great Britain. CMP schemes can also be referred to as Collective Defined Contribution (CDC) schemes. Currently, employers and employees only have the choice of using defined benefit (DB) schemes or defined contribution (DC) schemes. The new scheme type involves investment of all contributions with opportunity for higher returns than other defined contribution schemes. The collective nature of the schemes means that investment risks are shared between the membership and employers, whilst pensioners will receive an income which is designed to achieve a balance between the scheme’s assets and the provision of benefits. CMP schemes will also require actuarial valuations every year. The government believes this will be more sustainable for both employers and employees and has the potential to offer better outcomes for pension scheme members. The Department for Work and Pensions have outlined application requirements and authorisation criteria to ensure only well-run schemes are allowed to operate. These include ensuring that persons involved in key capacities relating to these schemes are fit and proper and that the scheme has sufficient financial resources to meet the costs of setting up and running the scheme, with additional resources to take necessary steps if things go wrong. Further legislation is expected to be laid in front of parliament this month, relating to modifications and consequential/miscellaneous amendments.
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Public sector retirement calculator 24 March 2022
The Government Actuary’s Department (GAD) has developed an online retirement calculator to give employees paying into public sector pension schemes a better understanding of what retirement will look like for them. The calculator will allow members to understand the retirement benefits they may be eligible for in a relatable context. The calculator will take basic details, pay rises and working patterns into account. The calculator will be rolled out to several public sector employers over the course of the upcoming tax year. The retirement calculator follows the McCloud legal ruling. The judgment means some pension scheme members have a choice between different benefits- legacy schemes (typically final salary schemes) and reformed schemes (typically career average revalued earnings schemes). The calculator will allow members and providers to understand their options and what they entail.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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