The Chartered Institute of Payroll Professionals
News On Line
Pension dashboards
Pensions dashboards consultation released 2 February 2022
The Department for Work and Pensions (DWP) has released a consultation which focuses on the introduction of pensions dashboards. Pensions dashboards will be an electronic communication service, intended to allow individuals to plan more effectively for their retirements by collating all their pensions information from a variety of sources in one place. It will also provide information on their state pension. The consultation asks for answers to policy questions that centre on the creation of pensions dashboards. Regulations showing how the policy would be turned into law have been provided and can be viewed here. They highlight the requirements that ould need to be met f or a pensions dashboards service to be regarded as a ‘qualifying pensions dashboards service’. They also stipulate the requirements to be met by the trustees or managers of relevant occupational pension schemes, along with provisions to ensure their compliance with the requirements. Additionally, the regulations set out provisions for The Pensions Regulator (TPR) to take enforcement action relating to pension schemes that don’t comply.
The consultation is open until 13 March 2022 and can be accessed here.
Back to contents
A new type of occupational pension scheme authorised to operate in UK. 10 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 ach ieve 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.
Back to contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 198 of 220
Made with FlippingBook - Online magazine maker