have two accounts but there would have had to have been some basic changes to their details to allow this to happen. An employer has no need at all to be aware of any other employers – again it is not their responsibility to check for this. Similarly they are only responsible for meeting their legal duties. We will accept payments of up to £4,200 for each employer during the Scheme year (for NEST this is year to 31 March). At the end we then check to see if an individual member has received more than £4,200. Only if they have, do we follow some further rules – but again it is the responsibility of NEST to sort this out. Essentially these rules are: 1. Allow any payments to stay that are the employers meeting their legal obligations – whatever total these mean for the member 2. We then refund any contributions in excess of the highest of £4,200 and (i) in a prescribed order – this currently means that the first to be refunded are the member’s own voluntary contributions and the last are any above minimum employer contributions. 3. However there is no need for an employer to be aware of this (until they receive a refund!) or to have any responsibility to sort it out – this is what NEST will do. An employer must simply meet its legal obligations for that employee in that employment. 4. NEST maintains the records separately and the employee would be able to view on- line the details of their account and who had submitted which contributions. Follow this link to read the full Q & A document. If you would like to register your details for our Pension Reforms SIG, please email info@cipp.org.uk with your membership number.
PENSION REFORMS Q & A UPDATED
11 January 2012 The Policy team has added some important FAQs to the Pensions Reform SIG. A must read is an update from The Pensions Regulator about the use of postponement. If you would like to be a member of the Pensions Reform Specialist Interest Group and receive news directly to your inbox, email info@cipp.org.uk with your membership number.
CIPP POLICY SURVEY: REFUND OF CONTRIBUTIONS PROCESS 7 September 2011
Rules for Automatic Enrolment will mean that employers will have to automatically enrol their employees into a pension scheme. Employees will have the right to opt-out and have contributions refunded. One possibility may be that the pension provider provides a "refund of contributions process" for those who opt-out which would return the member’s part of the contribution directly to the employee without having to go back through the employer’s payroll. The Policy team are interested to see how useful you think such a process would be and would be very grateful if you could spare five minutes to complete a very short survey on this subject. The survey will close on 14 September 2011. Thank you very much for your help.
CIPP Policy News Journal
09/10/2012, Page 149 of 234
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